EQVA ASA
ANNUAL
REPORT
2023
2ANNUAL REPORT 2023
EQVA ASA is a knowledge-based active owner of industrial
service companies that contribute to the green transition in
maritime, power intensive and renewable industries.
The group has a well-diversied product and market portfolio.
Further growth and value creation will be obtained through
a combination of industrial excellence in each portfolio
company, synergies between the companies in the group
and value-creating M&A activities.
THIS IS EQVA
3
ANNUAL REPORT 2023
Full-service provider of
technical, sustainable solutions
and services to maritime and
landbased industries.
A specialiced hydropower
plant developer and operator
4ANNUAL REPORT 2023
Digital solutions and green technology are needed and included in new
projects and retrotted in existing production assets and plants. This creates
an unprecedented demand for industrial services, which our portfolio
companies are well equipped to meet through their market leading positions
and focus on service and high quality in each delivery. In total this provides
a strong foundation for protable organic growth.
The transformation of industries and the new business models that emerge
create opportunities for consolidation and re-engineering of industrial service
companies. EQVA is well placed to take the lead in such transformation. It
is a responsible owner with an eternal investment perspective, and it aims
to maximise nancial return over time.
STRATEGIC PRIORITIES
The race towards carbon neutrality
is on, and customers are turning to
EQVA for help.
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ANNUAL REPORT 2023
EQVA is supported by highly committed owners and powered by experienced investment
professionals and industry leaders. Our portfolio companies have earned the trust of their
customers through decades of successful deliveries, on time and within budget. Together
we take pride in delivering value to our shareholders by providing the best possible service
to our customers.
EQVA’s nancial targets for 2024
• NOK 600-700 million in revenue
• 5-7 per cent EBITDA margin
• EQVA has set a long-term target EBITDA margin for the group, ranging between 7 to 9 per cent.
6ANNUAL REPORT 2023
1
1.1
1.2
1.3
1.4
1.5
1.6
2
2.1
2.2
3
3.1
3.2
3.3
3.4
3.5
3.6
4
4.1
4.2
4.3
4.4
4.6
7
ANNUAL REPORT 2023
Highlights and key figures
EQVA´s history
Letter from the CEO
The segments
Presentation of the board and management
The EQVA share
Board of Director's report and Corporate Governance
Board of Director's report
Corporate Governance report
Sustainability
EQVA´s approach to working on ESG
Reporting framework
Financial statements
Consolidated financial statements
Notes to the consolidated financial statements
Financial statement - Parent company
Notes to the financial statement - Parent company
Independant auditor´s report
8
10
12
14
16
18
20
22
28
33
34
35
37
38
44
84
90
104
CONTENT
8ANNUAL REPORT 2023
Highlights and key figures
Another strong year
• Strong performance in 2023: EQVA showed a strong nancial performance, with a notable increase in operating
revenue compared to last year. The Products, Solutions & Renewables segment demonstrated substantial growth,
beneting from a strong order book and improved margins.
• High activity for Products, Solutions & Renewables segment: BKS’s high activity level materialize into a strong
orderbook for 2024. Fossberg Kraft has 2 hydropower plants under construction for a UK infrastructure fund.
• Strategic Divestments: The divestment of the shipyard Havyard Leirvik was marking a strategic shift towards
reinforcing EQVA's focus on the Products, Solutions & Renewables segment . In addition, EQVA sold its shares in
the PSV Havila Charisma to Havila Holding AS in Q1 2024.
• Solid order book for 2024: EQVA's strong customer partnerships ensure a promising future.
Key figures 2023
• NOK 670 million in total operating income.
• NOK 25,9 million in EBITDA.
• Orderbook NOK 487 million.
• 355 FTEs in total.
9
ANNUAL REPORT 2023
Fossberg Kraft AS
Valen
Zenit Engineering AS
Sunde
Marine Support AS
Storebø
BKS Industri AS
Sunde
BKS VVS AS
Mathopen
EQVA ASA
Valen
EQVA ASA
Dep, Fosnavåg
EQVA ASA
Dep, Oslo
BKS Power and Automation AS
Sunde
EQVA Eiendom Holding AS
Sunde
Our geographical footprint
Along the entire coast of western Norway
10ANNUAL REPORT 2023
EQVA´s history
Building on a more than 100 years of history, EQVA has a rich heritage in the maritime and
land-based industry. The group has continually evolved to meet the changing demands of the
market.
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ANNUAL REPORT 2023
Important milestones:
• 1918: Jonas Løland founded Løland Motorverksted (machine workshop) in Leirvik, which marked the start of the company's
activity in the maritime industry.
• 1938: The yard constructed its rst newbuilding, "Loftesnesferja", which was a signicant milestone for the company.
• 2008: BKS was founded as mainly a personnel and service engineering provider for the construction industry. In subsequent
years, BKS expanded its operations and developed into a fully integrated service provider for land-based industries. More
investors joined the company, leading to further growth and expansion of services offered.
• 2014: The group was listed on the Oslo Stock Exchange under the name Havyard Group.
• 2018: Fossberg Kraft was founded in Handeland Gard in Kvinnherad municipality. Since its inception, Fossberg Kraft has
expanded its hydropower portfolio to include the Ljotå hydropower plant in Bjørnafjorden municipality and the Svandalen
hydropower plant in Sauda municipality.
• 2020: The group initiated a restructuring of its yard to shift focus from new buildings to maintenance and service offerings,
which reected the company's evolving strategy.
• 2021: The group began revising its corporate strategy to focus on growth within repair, service, and maintenance in the marine
service segment, which reected its commitment to long-term success.
• 2022: The group entered into a business combination agreement, whereby the group acquired all shares of HG Group,
consisting of BKS and Fossberg Kraft, to start its journey towards becoming a fully integrated service provider to on- and
offshore industries.
• 2022: The group changed its name to EQVA and expanded its services to offer complete industrial services and renewable
energy to key customers, which marked a signicant step in the group’s growth and development.
• 2023: The shipyard Havyard Leirvik was divested to Tersan in November 2023.
12ANNUAL REPORT 2023
CEO letter
Two-fold strategy
EQVA of 2024 is pursuing a two-fold strategy. The company is an active industrial owner, which engage in value creating M&A.
Equally important, EQVA is also an engineering and fabrication group which provides services to other leading industrial players
in sectors that range from process- and metal industries to maritime transport and aquaculture.
We consider ourselves a leading and proactive creator of valuable businesses through organic growth and M&A. We are
opportunistic, but we are also focused and disciplined in our approach. We believe we are best as an owner of competence
intensive and asset light companies.
As a service provider to industry, we engage in projects that are typically complex and diversied, projects that involve a wide
range of engineering, electrical and piping disciplines, and assembly and commissioning work at customer sites. We encourage
virtues such as customer focus, attention to detail, exibility, and creativity when we together with our customers approach
the task at hand.
Common denominators
Across all our activities, there are some important common denominators. Whether we are chasing M&A opportunities,
working on large industrial projects, or providing engineering support to the well boat in our dock, there are people involved.
Experienced and skilled personnel, who are dedicated to their job and committed to deliver quality.
Environmental, social and governance (ESG) factors are important features in our business today, and strong drivers for growth.
Almost everything we do for our customers has a sustainability dimension. Fossberg Kraft’s efforts to identify and build new
zero-emission hydropower plants is an obvious example. Similarly obvious is our involvement in the expansion of the world’s
most climate effective zinc production in Odda.
Another strong year
Looking back to 2023, there is no doubt that 2023 has been a remarkable year with
signicant changes to the company.
We started the year with the three main companies Havyard Leirvik, Fossberg Kraft and BKS. During the
autumn 2023 we entered into a sales process with the Turkish shipyard Tersan regarding Havyard Leirvik,
which was divested later in November.
The two remaining companies experienced strong development and performance during 2023. BKS faced
a signicant demand for its services and landed a total revenue of 619 MNOK which was up 60% compared
to 2022. At the same time Fossberg Kraft continued to deliver solid performance within its business area.
The orderbook for the segment Products, Solutions & Renewables is solid into 2024.
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ANNUAL REPORT 2023
ESG is also becoming increasingly relevant in EQVA itself. In 2023 we continued to
develop clear targets and develop a sustainability strategy and reporting procedure,
which forms the basis for our 2023 ESG report.
We hope you will enjoy reading our annual report for 2023, and that you will nd
our recent achievements and ambitions for the future relevant for you. We are
committed to creating value for all our stakeholders: customers, employees, business
partners, and shareholders alike.
We thank you all for your continued commitment and support and look forward to
yet another eventful and successful year together.
Best regards
Erik Høyvik
CEO
14ANNUAL REPORT 2023
The segments
Products, Solutions & Renewables
The Products, Solutions & Renewables segment accounted for 100 per cent of total income in 2023.
The segment comprises of two subsidiaries BKS and Fossberg Kraft.
BKS is a full-service provider of technical installations to the land-based and maritime industry in Norway. With a strong presence
throughout the value chain, BKS has developed long-standing relationships with well-known players in the industry. BKS was
established in 2008 and is headquartered in Sunde, Kvinnherad, with branch ofces in Bergen and Austevoll. The company had
347 FTEs at the end of 2023, of which 75 per cent are skilled professionals with at least one certicate.
Fossberg Kraft focuses on the development and operation of small-scale hydropower plants in southern Norway. Fossberg
currently operates several small-scale power plants. The company is also involved in development of new projects. Fossberg Kraft
was established in 2018, and is headquartered in Valen, Kvinnherad.
• Renewable energy
• Solutions
• Process
Key markets:
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ANNUAL REPORT 2023
Real estate
The real estate segment was established in 2023 and include the Group´s real estate properties.
The properties are predominantly production related.
Maritime services
Havyard Leirvik was divested to Tersan in November 2023. The Maritime Services segment will therefore be reported as
discontinue operation in the 2023 accounts.
16ANNUAL REPORT 2023
The board and management
Management team
Erik Høyvik
CEO
Petter Sørdahl
CFO
With 15 years of experience in maritime and
land-based industries. Mr. Høyvik brings
extensive knowledge to the company. He
holds 0 shares in the company.
With over 10 years of experience from
nancial markets, M&A and business
development. Mr. Sørdahl holds 0 shares in
the company.
Trygve Kjerpeseth
CEO of BKS
Group Head of Risk and Projects
With 15+ years of experience as a partner in
a law rm and 8 years as an in-house lawyer
in HG Group. Mr. Handeland holds 584 163
shares in the company through Handeland
Eigedom AS.
Sverre Olav Handeland
In-house lawyer
With 30+ years of experience from senior
project management. Mr. Kjerpeseth holds
0 shares in the company.
With 30 years of leadership experience
with a primary focus on production and
procurement. Mr. Jensen holds 0 shares in
the company.
Tom Jensen
CEO of Fossberg Kraft
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ANNUAL REPORT 2023
Even Matre Ellingsen
Chairman
Vegard Sævik
Board Member
Rune Skarveland
Board Member
Ellen Merete Hanetho
Board Member
Anne Soe Myrmel Bruun-Olsen
Board Member
Kari Markhus
Board Member
Employee Representative
Tomasz Bartlomiej Wesierski
Board Member
Employee Representative
Former Group CEO of Astrup Fearnley with extensive board
experience in both regulated and non-regulated businesses. Mr.
Matre Ellingsen holds 8 168 462 shares in the company through
Neve Eiendom AS.
Employed in Havila Holding and holds several board positions,
and is Chairman of the Board in Fjord1. Mr. Sævik holds 1 290
000 shares in the company through Innidimman AS. Mr. Sævik
also holds a non-controlling position in Havila Holding AS which
holds 10 000 000 shares in the company.
Former CEO of Skarveland AS from 1997 to 2008 and has held
several board positions in property development, industrial, and
hydropower companies. Mr. Skarveland holds 7 960 358 shares
in the company through Eikestø AS og Eikestø Eiendom AS.
Brings over 20 years of experience in nancial and strategic
business development to the board. Mrs. Hanetho has
leadership experience from her prior positions in HydrogenPro,
MPC Energy Solutions and Goldman Sachs. Mrs. Hanetho
holds 33 333 shares in the company.
Mrs. Bruun-Olsen was the former CEO in Cushman & Wakeeld
Realkapital (2000-2018), now acting as senior Partner for the
company. She also brings extensive boad experience from
former board membership of Pure Water AS, NEAS ASA and
Odin Forvaltning (Sparebanken 1). Mrs. Bruun-Olsen has 25+
years of strategic, sales/marketing, and HR/people experience.
Mrs. Bruun-Olsen holds 33 333 shares in the company.
Board of directors
18ANNUAL REPORT 2023
The share
EQVA aims to be an attractive investment for its shareholders,
delivering competitive return through sustainable growth both
organically and through value-adding acquisitions.
Key facts
• EQVA ASA is a publicly limited company. The share is listed on the Oslo Stock Exchange
and the ticker code is EQVA.
• EQVA (formerly as Havyard Group ASA), was listed in July 2014.
• All shares have equal rights and are freely transferable. Each share grants the holder one vote
and there are no structures granting disproportionate voting rights.
• 98 per cent of our shares are held by Norwegian shareholders.
• EQVA holds 599 971 treasury shares number of treasury shares as of 31 December 2023,
making it the 13
th
largest shareholder.
Key gures
• NOK 216.7 mill market cap as of 31 December 2023.
• 71 987 316 number of shares.
• 3 211 number of shareholders.
• During 2023 the return on holding the share was 3.8 %.
Share price development during 2023
2
2,5
3
3,5
4
jan 23 feb 23 mar 23 apr 23 mai 23 jun 23 jul 23 aug 23 sep 23 okt 23 nov 23 des 23
Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Jul 23 Aug 23 Sep 23 Oct 23 Nov 23 Dec 22
4
3,5
3
2,5
19
ANNUAL REPORT 2023
The 20 largest shareholders as of 31 December 2023
OWNER NUMBER OF SHARES SHARE COUNTRY
1 NINTOR AS
16 938 645
23,53 % Norway
2 HAVILA HOLDING AS
10 000 000
13,89 % Norway
3 NEVE EIENDOM AS
8 168 462
11,35 % Norway
4 ROS HOLDING AS
5 660 027
7,86 % Norway
5 EIKESTØ EIENDOM AS
4 960 847
6,89 % Norway
6 FURENESET EIENDOM AS
4 960 847
6,89 % Norway
7 EIKESTØ AS
2 999 511
4,17 % Norway
8 FURENESET INVEST AS
2 999 511
4,17 % Norway
9 EMINI INVEST AS
1 290 000
1,79 % Norway
10 HSR INVEST AS
1 290 000
1,79 % Norway
11 INNIDIMMAN AS
1 290 000
1,79 % Norway
12 MP PENSJON PK
1 167 768
1,62 % Norway
13 EQVA ASA
599 971
0,83 % Norway
14 HANDELAND EIGEDOM AS
584 163
0,81 % Norway
15 PISON AS
430 000
0,60 % Norway
16 KAMATO AS
340 000
0,47 % Norway
17 P A WIND
266 198
0,37 % Norway
18 K R HÜBERTZ
226 000
0,31 % Norway
19 A JOHNSEN
221 376
0,31 % Norway
20 CLEARSTREAM BANKING S.A.
178 674
0,25 % Luxembourg
20ANNUAL REPORT 2023
Board of Director's report
& Corporate Governance
21
ANNUAL REPORT 2023
22ANNUAL REPORT 2023
BOARD OF DIRECTORS REPORT
BOARD OF DIRECTORS REPORT
2.1 Introduction
2023 has been a pivotal year for EQVA ASA as we continued our
journey towards strengthening our market position, enhancing
operational efciency, and committing to the green transition
within maritime, power-intensive, and renewable industries. Our
strategic decisions and investments throughout the year have laid
down solid foundations for sustainable growth and value creation.
EQVA concluded the year 2023 with signicant achievements
across our diverse portfolio, underpinned by our strategic
focus on the Products, Solutions & Renewables segment. The
successful divestment of our shipyard Havyard Leirvik marked
a strategic pivot towards concentrating our efforts on industrial
service companies contributing to the green transition. This move
not only reafrms our strategic direction but also optimizes our
portfolio towards more sustainable and protable ventures.
2.2 Key events
In 2023, EQVA navigated through a transformative year marked
by strategic milestones, operational growth, and signicant
corporate decisions. The key events throughout the year reect
the company's continuous evolution, and its commitment to
being a knowledge-based active owner of industrial service
companies contributing to the green transition. Here's a concise
summary of the pivotal developments in 2023:
Strategic Divestments and Acquisitions: A signicant event was
the divestment of the shipyard Havyard Leirvik, marking a strategic
shift towards reinforcing EQVA's focus on the Products, Solutions
& Renewables segment. Additionally, the company signed a
letter of intent for a business combination with Kvinnherad
Elektro and LOS Group, aiming to establish a market-leading
and fully integrated supplier within the sectors of piping, welding,
structures, machining, instruments, power and automation.
Financial Performance: The company showed a strong nancial
performance, with a notable increase in operating income
compared to the previous year. The Products, Solutions &
Renewables segment demonstrated substantial growth, beneting
from a strong order book and improved margins.
Contracts and Collaborations: EQVA's subsidiary, BKS Industri,
secured among others a new contract with Norsk Hydro for
upgrading furnaces at their aluminium plant, highlighting EQVA's
competitive edge and contribution to energy-efcient industrial
solutions.
2.3 Overview of the business
The board of directors’ report for Eqva group (“Eqva” or “the
group”) encompasses Eqva ASA (“the Parent company” or “the
company”) with its subsidiaries.
Business concept and location
EQVA ASA is a public limited liability company organized and
existing under the laws of Norway pursuant to the Norwegian
Public Limited Companies Act. The shares of EQVA ASA are
listed on Oslo Børs with the stock ticker EQVA.
The EQVA group has as at year-end 355 employees in total. The
corporate headquarter is located in Kvinnherad municipality.
EQVA ASA is a knowledge-based active owner of industrial service
companies that contribute to the green transition in maritime,
power intensive and renewable industries. The purpose of the
company is to assist the subsidiaries with strategic management,
nance, logistics, proling and other support functions.
With its current subsidiaries, EQVA has a well-diversied product
and market portfolio, and further growth will be established
through a combination of company-based development,
utilization of synergies between the companies in the group and
value-creating M&A activities.
Key companies in the group are BKS Industri and Fossberg Kraft,
each building on decades of experience and widely recognized
by clients in a broad range of industries. The key subsidiaries are
located in Kvinnherad municipality. In addition, the group also
owns 50% of the PSV Havila Charisma.
23
ANNUAL REPORT 2023
BOARD OF DIRECTORS REPORT
Business segments
The business is organised in two business segments:
1. Products, solutions & renewables
Products, solutions & renewables consists of the service and
maintenance provider BKS, with underlying subsidiaries, and the
small-scale powerplant company Fossberg Kraft. Together they
form a fully integrated service and hydropower provider.
BKS provides service and maintenance to the Norwegian land-
based and maritime industry, functioning as a full-service supplier
of technical installations with presence throughout the value-
chain. It has long-term relationships with large clients, tailor-made
and recurring customer projects.
Fossberg Kraft specializes in the construction and operation
of small-scale hydropower plants and has new projects in the
pipeline.
2. Real Estate
EQVA is rening its strategy by focusing its Product Solutions and
Renewables companies exclusively on their core areas, while other
divisions within the group take on the management of associated
real estate. This strategic division allows EQVA to enhance its
focus on innovation and growth within the renewable sector,
ensuring that its industrial properties are efciently managed by
specialized segments of the group dedicated to real estate. This
approach optimizes operational efciencies and leverages the
group's diverse strengths.
Following the divestiture of Havyard Leirvik, EQVA no longer
includes Maritime Services as a reporting segment.
2.4 Financial review
Accounting principles
The following nancial review is based on the consolidated
nancial statements of EQVA ASA and its subsidiaries. The
statements have been prepared in accordance with IFRS®
Accounting Standards as adopted by the EU as well as the
Norwegian accounting legislation.
In the view of the board, the statement of prot and loss, the
statement of nancial position, the statement of cash ows, the
statement of changes in equity and the accompanying notes
provide satisfactory information about the operations, nancial
results and position of the group and the Parent company on 31
December 2023.
Statement of prot and loss
The operating income for the group in 2023 was NOK 670.2
million compared with NOK 223.8 million in 2022. The increase
is mainly due to strong deliveries from BKS Industri AS and
accounting effects from 2022 (BKS and Fossberg Kraft were
included in the 2
nd
half of 2022).
The operating prot (EBIT) for the group in 2023 was NOK 10.5
million compared with NOK -28.9 million in 2022. The margin
improvement is driven by BKS.
The group prot after tax for 2023 was NOK –21.8 million
compared with NOK -19.6 million in 2022, including discontinued
operations.
Statement of cash ow
In general, the cash ow statement in 2023 reects a year with
signicant restructuring of the group`s activities. The cash ow
statement shows changes in liquidity throughout the year.
Net change in cash ow for the group during the period is NOK
-24.4 million compared to NOK - 92.3 million in 2022. The cash
ow from operating activities is NOK -51.0 million compared to
NOK -33.0 million in 2022. The cash ow is affected by, among
other things, changes in work in progress.
The net cash ow from investment activities is NOK 18.6 million
in 2023 compared with NOK -26.1 million in 2022.
The net cash ow from nancing activities is NOK 8.0 million in
2023 compared with NOK -33.2 million in 2022. The cash ow
from nancing activities is mainly driven by increased bank debt.
Statement of nancial position and liquidity
The group’s cash position was NOK 36.0 million as of 31 December
2023. The group’s liquidity is considered to be satisfactory. Any
operational measures will be put in place if required.
The group has total liabilities of NOK 377.2 million as of 31
December 2023 compared with 400.2 in 2022. Of this sum,
NOK 201.3 million is short-term debt. More details regarding the
group`s bank debt can be found in note 17. The group meets all
valid bank covenants as of 31 December 2023.
The balance shows total assets for the group in 2023 of NOK
667.6 million compared with NOK 712.4 million in 2022.
24ANNUAL REPORT 2023
BOARD OF DIRECTORS REPORT
Equity for the group was NOK 290.4 million as of 31 December
2023 compared with NOK 312.1 million at year-end 2022.
Equity has changed due to underlying performances in Product,
Solutions and Renewable as well as the divestiture of Maritime
Services.
Parent company accounts and allocation of prot
The parent company had an operating income of NOK 9.6 million
in 2023 compared to NOK 5.7 million in 2022. This increase was
driven by changes in the Group’s internal services. The prot after
tax in 2023 was NOK 19.9 million compared to NOK 110.3 million
in 2022. The 2023 earnings are affected by the sale of Havyard
Leirvik and sale of remaining shares in HAV Group ASA.
Transferred to other equity in total NOK 19.9 million. The board
proposes a dividend of NOK 0.
The board believes that the annual accounts give a correct
outline of the group’s assets and liabilities, nancial position, and
performance.
2.5 Events after 31 December 2023
EQVA has initiated a sales process concerning the PSV Havila
Charisma to further reafrm it´s strategy as a industrial service
provider.
For further information, please see Note 30 – Subsequent events.
2.6 Going concern
The accounts have been prepared under the assumption of a
going concern; see Section 3–3a of the Norwegian Accounting
Act. We hereby conrm that this assumption is correct.
2.7 Risk assessment
Risk assessment is generally handled as an integral part of the work
processes. All managers across our companies are responsible
for risk management and internal control within their area of
responsibility. The board generally receives quarterly reports on
the company's nancial situation, information about projects and
market conditions.
The operational companies in EQVA bears the commercial risk in
relation to contracts with clients. In a limited number of cases, the
parent company (EQVA ASA) provides guarantees.
Within the group, it is the individual subsidiary that bears the
risk for its performance. In addition to the contract risk factors
described above, the group is exposed to the following risk factors:
Financial risk
The group’s activities expose it to nancial risks such as, market
risks, credit/counterpart risk and liquidity risk. The Board of
Directors is responsible for setting the objectives and underlying
principles of nancial risk management for the group. The
Board of Directors also establishes detailed policies such as
authority levels, oversight responsibilities, risk identication and
measurement, exposure limits and hedging strategies (if relevant).
Foreign currency and interest rate risk
The group’s policy states that foreign currency exposure should
be identied, and, as far as possible, secured in consultation with
corporate management and the company's board of directors.
The company may also be exposed to interest rate uctuations.
Market risk
The nature of the business dictates that the group must enter into
new contracts as existing orders are completed and delivered.
Contracts are awarded in competitive markets based on bidding
processes against other suppliers and where the ability to meet
the requirements of the respective clients is crucial.
We nd ourselves in an unreal situation with a war in Europe,
which affects us strongly. Large parts of the world are united in
the condemnation of Russia's war in Ukraine, and where extensive
international sanctions have been imposed.
The Group complies with sanctions implemented by Norwegian
authorities and has stopped all potential new sales with Russian
exposure. None of our companies are directly nancially exposed
in relation to the applicable sanctions against Russian companies
and individuals, but in general we observe price increases and
longer lead-times for materials because of the warfare.
Credit risk
The credit risk is assessed to be limited. Security instruments will
be considered when relevant.
Liquidity risk
A liquidity budget is established for each project and is managed
in line with the progress of the project thus ensuring an adequate
supply of liquidity.
Risk is generally handled as an integral part of the work processes.
All managers are responsible for risk management and internal
control within their area of responsibility.
25
ANNUAL REPORT 2023
BOARD OF DIRECTORS REPORT
Climate risk
The climate risk consists of both physical risk and transition risk.
Physical risk can be the effect of extreme weather events, and
transition risk is risk associated with the transition to a low-
emission society. The physical risk of weather-related damage,
for example at Fossberg Kraft project development, emphasizing
the importance of accounting for climate considerations, such
as frost and ooding, which can delay the construction of
small power plants. Like its competitors, Fossberg Kraft faces
these environmental challenges, which can impact the timely
completion of projects despite careful planning and mitigation
efforts. This approach underlines the company's commitment to
resilient project design while acknowledging the unpredictable
nature of climate impacts on development timelines. Even so we
still considered the risk to be limited.
Transition risk can be political changes and regulations that
result in increased fees, nes and orders. In relation to BKS and
Fossberg, the transition risk is also considered to be relatively low,
but political decisions as i.e. tax on aquaculture business may
affect the group`s businesses.
Overall, the climate risk and its impact on future earnings is
considered to be relatively low.
2.8 Employees and organisation
Working environment
In 2023, the average sickness absence rate (combing short-
term and long-term) in the group was 4,54 per cent. This is a
decrease of 1,28 per cent compared to 2022 which is a signicant
improvement to our KPI. The company was proactive in the
autumn 2023, to prevent inuenza effects, by offering to cover
the cost of the inuenza vaccine for the employees.
BKS had a reduction in injuries requiring medical treatment
from 2022 to 2023. Most injuries are related to cuts and crush
incidents. The frequency of absenteeism injuries has been
reduced by 20.5% from 2022 to 2023, and by 48.9% for injuries
requiring medical treatment.
BKS Industries recently achieved their certicate within ISO-
45001, the international standard on health and security in
the workplace, that requires the establishment of an effective
management system.
The board receives quarterly statistics on developments within
quality, health, safety, and the environment. Read more about
Eqva’s efforts within employee health and working environment in
our Sustainability report.
Equality and discrimination
One of the EQVA group’s goals is to comply with the Norwegian
Equality and Anti-Discrimination Act, including the promotion
of equality and the prevention of discrimination on the basis
of gender, pregnancy, leave in connection with childbirth or
adoption, care responsibilities, ethnicity, religion, belief, disability,
sexual orientation, gender identity, gender expression, age or
other signicant characteristics of a person.
The group seeks to provide equal employment opportunities, treat
all employees and job seekers fairly. One of EQVA’s subsidiaries,
BKS Industri, are subject to the requirement to provide an annual
equality statement describing the company's efforts to secure
equal opportunities under section 26-a in the Norwegian Equality
and Anti-Discrimination Act. The annual equality statements can
be found on BKS websites.
Employees
On 31 December 2023, a total of 4,5 was permanent employees
of EQVA ASA. Across its subsidiaries, EQVA had 355 permanent
FTE's on 31 December 2023. In addition, EQVA’s subsidiaries
employed 0 temporary workers for operational projects.
Changes to the executive management and board
The Executive management team consists of CEO of EQVA Erik
Høyvik and CFO Petter Sørdahl. In addition, the operational
Management team include CEO BKS Trygve Kjerpeseth, CEO
Fossberg Kraft Tom Jensen, and in-house lawyer Sverre Olav
Handeland.
The board consists of Even Matre Ellingsen (chair), Vegard
Sævik, Rune Skarveland, Ellen Merete Hanetho, Anne Soe
Myrmel Bruun-Olsen, Kari Markhus (employee representative)
and Tomasz Bartlomiej Wesierski (employee representative).
According to the articles of association, the board of directors of
the company shall have 3 to 7 members.
The two employees-elected directors were elected in February
2024, for a period of 2 years.
Directors’ and ofcers’ insurance
EQVA ASA has a board liability insurance for the group, including
the parent company and its subsidiaries. The insurance covers
the board members, CEO and members of the management
team. The insurance comprises personal legal liabilities, including
defense- and legal costs.
26ANNUAL REPORT 2023
BOARD OF DIRECTORS REPORT
2.9 Natural environment
EQVA’s activities do not directly affect the natural environment,
apart from that which must be assumed to be natural for this type
of business. The company complies at all times with the prevailing
legal requirements in this area.
In 2023, there have been no environmental issues at the production
facilities or in the natural environment that necessitated special
measures. The group has not had any air or water emissions in
excess of those permitted by the authorities.
External parties conduct control and follow-up of the company
and the company's activities relating to ISO certication.
EQVA’s activities, in isolation, do not affect the natural environment
apart from that which must be assumed to be natural for this type
of business. The company always complies with the prevailing
legal requirements in this area.
2.10 Research and development
The group limits its research and development activities to
providing technical solutions that assist its subsidiaries.
2.11 Corporate governance
Good corporate governance ensures a robust risk
management system, allowing the organization’s board of
directors to retain control over the business and have clearly
dened responsibilities. Thus, it is one of the cornerstones of
a well-functioning business, providing the foundation for long-
term value creation for shareholders, employees, and other
stakeholders.
The board of directors of EQVA ASA has established a set
of governance principles to ensure a clear division of roles
between the board of directors, the executive management,
and the shareholders. The principles are based on the
Norwegian Code of Practice for Corporate Governance.
Being listed at the main market at the Oslo Stock Exchange,
EQVA is subject to corporate governance reporting
requirements under section 3-3b of the Norwegian
Accounting Act and the Norwegian Code of Practice for
Corporate Governance, cf. section 4.4 of the Oslo Stock
Exchange Rule Book II. The Norwegian Accounting Act may be
found (in Norwegian) at lovdata.no. The Norwegian Code of
Practice for Corporate Governance may be found at nues.no.
EQVA follows the Norwegian Code of Practice for Corporate
Governance, and the company’s practice is in accordance with
these recommendations.
The annual statement on corporate governance has been
approved by the board and can be found on pages 28 to 32.
Accounting Act 3-3b mandates disclosing equality and
diversity guidelines, which EQVA lacks at the corporate level
due to governance structure and employee count. However,
its subsidiary BKS Industri have their own guidelines, detailed
in our sustainability report.
2.12 Corporate social responsibility
EQVA is required to report on its corporate responsibility and
selected related issues under section 3-3a and section 3-3c of
the Norwegian Accounting Act. EQVA has chosen to report
on its efforts related to the environment, social matters, and
corporate governance, which is described in the ESG report.
EQVA is covered by the Transparency Act's duty to carry out
due diligence assessments (§3) and submit an annual statement
on this (§5). The annual statement 2023 will be published by 21
March 2024 at www.eqva.no.
2.13 Shareholder ownership
EQVA ASA (formerly Havyard Group ASA) was listed on
the stock exchange in July 2014, and has 3 211 different
shareholders as of 31 December 2023.
The number of issues shares is 71 987 316. Nintor AS is the
largest shareholder in EQVA ASA as of 31 December 2023 with
an ownership of 23.5%.
The company holds 599 971 treasury shares.
2.14 Outlook and future development
The Group is well positioned for 2024 and going forward,
to capitalize on the green transition within the maritime,
products, solutions, and renewables sectors. The board of
directors is pleased to report that the group has a strong order
book which gives us a head start and sound outlook for 2024,
boosted by large contract wins in the latter part of the 2023.
27
ANNUAL REPORT 2023
Even Matre Ellingsen
Chairman of the Board of Directors
Anne Soe Myrmel Bruun-Olsen
Board member
Kari Markhus
Board member
employee representative
Vegard Sævik
Board member
Rune Skarveland
Board member
Tomasz Bartlomiej Wesierski
Board member
employee representative
Ellen Merete Hanetho
Board member
Erik Høyvik
CEO
BOARD OF DIRECTORS REPORT
Valen, 21 March 2024
The board of directors of EQVA ASA
2.15 Declaration by the board of directors and CEO
In accordance with Section 5–5 (2) of the Norwegian Securities
Trading Act, we hereby declare that the annual accounts for
the 1 January to 31 December 2023, have, to the best of
our knowledge, been prepared in accordance with current
accounting standards and that the information in the accounts
provides a correct picture of the company’s and the group’s
assets, liabilities, nancial position and performance as a whole.
We also declare that the annual report provides a correct
outline of developments and the performance and position of
the company and the group together with a description of the
key risk and uncertainty factors to which the company and the
group will be exposed.
28ANNUAL REPORT 2023
CORPORATE GOVERNANCE
STATEMENT CONCERNING
CORPORATE GOVERNANCE
EQVA seeks to maintain high standards for corporate
governance and believes that good corporate governance is an
important prerequisite for value creation.
1. Recommendations and regulations for corporate governance
The Company is subject to corporate governance reporting
requirements pursuant to Section 3-3b of the Norwegian
Accounting Act, and the Norwegian Code of Practice for
Corporate Governance drawn up by the Norwegian Corporate
Governance Board (NUES), cf. also Euronext Oslo Rulebook II
(issuer rules). The Accounting Act is available at www.lovdata.
no, and NUES is available at www.nues.no.
Information that the Company is obliged to provide pursuant
to Section 3-3b of the Accounting Act concerning reporting on
corporate governance is taken into account in this statement,
and, where natural, follows the same system as NUES.
In addition to the NUES requirements, Accounting Act 3-3b
mandates describing the Company's equality and diversity
guidelines. Due to the governance structure and employee
count, the Company lacks corporate-level guidelines. However,
corporate-level guidelines are currently under development.
EQVA's subsidaries have their own guidelines, detailed on our
sustainability report.
Core values
The Company strives to maintain a strong reputation for credibility
by consistently conducting its business with integrity and adhering
to all relevant acts and regulations governing its activities.
Members of the board of directors and employees shall act in
a fair and honest manner and demonstrate integrity in all their
dealings with other employees, business associates and clients,
the general public, the business community, shareholders,
suppliers, competitors and public authorities.
The Company's values and commitment to sustainable
development shall be reected, promoted and implemented
through guidelines, decisions and actions. The Company’s
guidelines “Code of Conduct for Business, Ethics and
Corporate Social Responsibility” and the Company's anti-
corruption program are available on the Company's website
www.eqva.no.
2. The business
The Company aims to be a leading knowledge-based active
owner of industrial service companies that contribute to the
green transition in maritime, power intensive and renewable
industries.
3. Equity and dividends
The board is committed to maintain a satisfactory capital
structure for the company to support its goals, strategy, and risk
prole, thereby ensuring that there is an appropriate balance
between equity and other sources of nancing.
Equity
At 31 December 2023, the company’s equity totaled NOK
290.4 million, which corresponds to an equity ratio of 43.5 per
cent. The board considers the Company’s nancial position
to be solid with the necessary capacity to support its strategic
priorities and risk prole.
Dividend
At a board meeting held on 17 March 2014, the board of
directors adopted the following dividend policy, which was
made known to the Company's shareholders and the market in
a prospectus dated 10 June 2014:
“The Company will continuously work to ensure that
shareholders receive a competitive return on their investment,
and give this priority over investments that are not directly
related to the Company's core activities. The Company will
thus focus strongly on value creation for its shareholders and
maintain a dividend policy, which safeguards the interests of the
shareholders and the Company in a good manner, with a clear
objective of the total, annual dividend payments corresponding
to 50–75 per cent of the prot after tax on a consolidated basis.
The Company intends to pay dividend on a quarterly basis to
achieve this objective.
It cannot be guaranteed that dividend will be proposed or
declared for each period. When the board of directors considers
whether to propose a dividend and determines the amount,
the board will take into account the limitations in legislation,
the Company's capital requirements, including capital costs,
the Company's nancial position, market prospects and other
general business terms and conditions. Any limitations on the
29
ANNUAL REPORT 2023
STATEMENT CONCERNING
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
payment of dividend in the Company's loan commitments or
other contractual commitments will be taken into account, as
will requirements for the maintenance of adequate nancial
exibility."
The board of directors has launched an initiative to revise the
group's dividend policy which will be communicated to the
market during Q2 2024.
In December 2023 the Board granted the authorization to
resolve distribution of dividend in the aggregate amount of
up to NOK 50,000,000 based on the approved 2022 annual
accounts. The authorization may only be used to the extent
all conditions for distribution of dividend are fullled, including
liquidity consideration. The authorization is valid until the
ordinary general meeting in 2024.
It is proposed to not pay dividends for the 2023 scal year.
Board mandates
During the annual general shareholder meeting in 2022, the
board was granted the following mandates:
The board of directors is authorised to increase the company's
share capital or acquire treasury shares for specic purposes
only, and the authorisation is granted for a period not exceeding
the next general meeting. Each purpose covered by the
authorisation is subject to a vote at the general meeting. Any
proposals related to share capital increases must be presented
to the general meeting for approval.
The mandates are valid until the annual general meeting in 2024.
4. Equal treatment of shareholders
The company has one class of shares. Each share of the
company carries one vote, and all shares carry equal rights.
In the event of a decision to waive the pre-emption rights of
existing shareholders to subscribe for shares in a share capital
increase, the decision must be based on the common interest of
the company and its shareholders, as well as applicable equal
treatment regulations.
In the event that the board decides to carry out a capital
increase without granting existing shareholders preferential
rights, based on an authorization from the general meeting, the
reason for this decision will be disclosed in the stock exchange
statement released in connection with the capital increase.
The Company's guidelines stipulate that board members and
executive personnel with a direct or indirect material interest in
agreements entered into by the Company are required to notify
the Company of such interests.
All transactions between the Company and its close associates
must be based on ordinary market terms and be conducted
at arm's length. Transactions that are not immaterial must
be subject to a valuation by an independent third party. The
Company is committed to ensuring that signicant transactions
with close associates comply with the requirements of the Public
Limited Liability Companies Act.
Information regarding transactions between close associates
can be found in note 27 (Related party transactions) included in
the Company's 2023 annual accounts.
The company's transactions involving treasury shares will be
conducted through the Oslo Stock Exchange’s (Oslo Børs)
trading platform at the prevailing market price, or through
a public offer made to all shareholders. In cases where the
company's shares have low liquidity, the board of directors will
exercise caution when making purchases and sales through the
stock exchange to ensure equal treatment of shareholders.
5. Freely negotiable shares
EQVA's shares are freely tradeable and listed on the Oslo Stock
Exchange, and there are no restrictions on ownership, trading,
or voting rights associated with the shares.
6. General meetings
The general meeting is the highest decision-making body of
the Company. The board of directors determines the format of
the meeting, which may be held physically or electronically in
compliance with relevant laws and regulations.
Notice of the annual general meeting
The board of directors is committed to facilitating the
participation of as many shareholders as possible in the
Company's general meetings and to making the general
meeting an effective forum for interaction between shareholders
and the board. To achieve this, the board ensures that:
• Shareholders receive the notice of the general meeting at
least 21 days before the meeting takes place, with the notice
being made available on Oslo Børs' notication system www.
newsweb.no and the Company's website www.EQVA.com
simultaneously.
• The case documents provided to shareholders contain
sufcient information to enable them to form an opinion on
the matters to be discussed in advance of the meeting.
• The registration deadline is set as close to the meeting date
as possible but no later than two days before the general
meeting. Shareholders who have not registered may be
denied admission to the meeting.
30ANNUAL REPORT 2023
CORPORATE GOVERNANCE
and voting directly or by proxy. The notice of the general
meeting includes a proxy form, which shareholders can use to
authorize someone to vote on their behalf.
In accordance with the Company's Articles of Association,
documents that are to be considered at the general meeting
may be made available on the Company's website instead of
being distributed with the notice of meeting. This also includes
documents that are required by law to be included in or enclosed
with the notice of the general meeting. However, shareholders
can request to receive these documents by mail.
At the general meeting, the annual accounts will be presented
for approval, and the prot will be allocated, or the loss will be
covered. The meeting will also address any other matters that
are within its scope of responsibility, as required by law or the
Company's Articles of Association.
The Company's Articles of Association do not specify who should
preside over the general meeting. Therefore, in accordance
with the provisions of the Public Limited Liability Companies
Act, the chair of the board opens the meeting, and the general
meeting elects the chair of the meeting.
7. Nomination Committee
The Company has established a Nomination Committee in
accordance with its Articles of Association. The committee comprises
two members, Rune Skarveland (leader) and Tore Thorkildsen.
The shareholders have approved the guidelines for the
Nomination Committee at the general meeting. The primary
role of the committee is to assist the board in fullling its
responsibility to nominate candidates for election at the general
meeting, ensuring that they possess the necessary qualications
and integrity to carry out their duties.
Specically, the committee is responsible for identifying and
evaluating potential board members, recommending them
for election at the general meeting, and proposing directors'
fees. Additionally, the committee provides advice to the board
on matters such as board composition, instructions, and
evaluation.
The general meeting determines the fees for members of the
Nomination Committee.
8. The Board of Directors, composition, and independence
The composition of the board of directors is intended to serve
the interests of all the shareholders and to meet the company’s
need for competence, working capacity, and diversity.
According to the Company's Articles of Association, the board
is composed of three to seven members who are elected for
two-year terms. The chair of the board is elected by the general
meeting.
On 31 December 2023, the Company’s board comprises ve
members, of which ve are elected by the general meeting. The
elected board members include two women and three men. Four
of these members are independent of the Company's executive
personnel, signicant business associates, and principal owner.
The Company does not have a corporate assembly, but it does
have two employee representatives who serve as members of
the board. The present employee representatives of the board
was elected in January 2024. Since January 2024 the board has
seven members.
The composition and qualications of the board are believed
to have a positive impact on the Company's growth and the
protection of shareholders' interests. A comprehensive overview
of the board members is provided in the annual report on page
1 7.
9. The work of the board of directors
The board is responsible for ensuring the Company's sustainable
value creation and establishing its goals, risk prole, and
strategies, as well as monitoring and tracking progress in these
areas. Additionally, the board is responsible for overseeing and
regulating the Company's operations, ensuring that they are
conducted within the bounds of the law.
The board employs and exercises rights of instruction in relation
to the chief executive ofcer (CEO), who is responsible for the
day-to-day running of the Company. The board oversees the
CEO’s operative responsible and its management.
The board follows an annual work plan and holds meetings
as needed, with a minimum of ve per year. The Company's
nancial calendar is available on www.newsweb.no and the
Company's website at www.eqva.no. The Company's nancial
results are published quarterly, unless the board decides
otherwise.
The board periodically discusses and evaluates its own work
processes, including the preparation and execution of meetings,
as well as its overall qualications and ability to oversee the
Company's activities.
10. Risk management and internal control
The board is accountable for implementing effective internal
control systems and risk management procedures that
are aligned with the Company's scope and activities. This
responsibility also includes the Company's core values and
Code of Conduct for Business, Ethics and Corporate Social
Responsibility.
31
ANNUAL REPORT 2023
CORPORATE GOVERNANCE
The most important risk for the Company is the market risk
associated with large contracts, nancial risk and operational
risk.
In practice, risk management is integrated into the work
processes, with all managers responsible for internal control and
risk management within their respective areas of responsibility.
The board receives quarterly reports on the Company's nancial
situation, projects, and market conditions, as well as statistics
on quality, health, safety, and environmental developments.
External parties conduct control and follow-up of the Company
and its activities related to ISO certication.
The board continuously evaluates the information submitted to
the board by the administration and adopts amendments to the
reporting procedures if required.
The Company's nancial reports are drawn up pursuant to
the accounting principles specied in the annual report. The
Company's quarterly reports to the board and the reports
published each quarter are prepared on the same principles.
The Company has an Audit Committee consisting of two of
the board members. One of the members have accounting
expertise. The Audit Committee plays a key role in overseeing
the nancial reporting process and the effectiveness of the
Company's internal control systems. The committee also
assesses the effectiveness of the external audit process and the
independence and qualications of the external auditor. The
Audit Committee reports its ndings and recommendations to
the board.
11. Remuneration of the board of directors
The remuneration to the directors is not performance-related
and is determined based on factors such as their responsibilities,
expertise, time invested, and the complexity of the business.
Remuneration of the board of directors and the Audit
Committee are decided annually by the general meeting.
Information about the remuneration paid to directors in 2023 is
presented in note 5 to the nancial statements, in accordance
with the Accounting Act section 7-31b. In addition, the company
will present an annual remuneration report to the shareholders
in accordance with the Norwegian Public Limited Liabilities
Companies Act section 6-16b, which will provide further details
on the remuneration of the board of directors and executive
management.
12. Remuneration of executive personnel
The Company strives to attract and retain executive personnel
who possess the necessary qualities to effectively run the
business and promote value creation. In order to achieve
this, competitive remuneration packages are offered to each
employee, which reect their area of responsibility and job
performance based on market standards.
The General Meeting in December 2023 approved the most
recent guidelines for remuneration of senior executives, in
accordance with the Public Limited Liability Companies Act
6-16a.
The Company's Compensation Committee, comprising two
board members, is responsible for formulating guidelines for
executive compensation and other benets, as per Section
6-16a of the Public Limited Liability Companies Act, to promote
value creation.
Further information about remuneration to executive
personnel is provided under note 5 to the nancial statements
pursuant to the Accounting Act, section 7-31b, and in the
annual remuneration report, which will be presented to the
shareholders in accordance with the Norwegian Public Limited
Liabilities Companies Act, section 6-16b.
13. Information and communication
The Company places a strong emphasis on transparency
and timely communication with its shareholders and other
stakeholders. The Company believes that providing accurate
and equal information to all stakeholders is crucial in enabling
them to make informed assessments of the Company's current
and future position. The Company is committed to upholding
high standards of reporting and ensuring that all stakeholders
have access to the information they need to make informed
decisions.
The Company is committed to timely and effective
communication of all information relevant to assessing its
operation and value to both shareholders and the market, in
compliance with the applicable regulations for companies listed
on Oslo Børs. The Company shall publish signicant information
through Oslo Børs' notication system at www.newsweb.no and
on its website at www.eqva.no, ensuring transparency and equal
treatment for all stakeholders.
The Company shall have a dialogue with its shareholders and
providing them with equal access to information via adequate
forums based on the principle of equal treatment and equal
access to information.
32ANNUAL REPORT 2023
The Company will publish an annual nancial calendar on
its website and through other appropriate channels, outlining
important dates and events such as quarterly reports and the
general meeting.
14. Takeovers
In the event of a takeover bid, the board will strive to ensure that
all shareholders of the Company receive equal treatment and
ensure that shareholders have access to sufcient information
and adequate time to evaluate the offer.
The board shall not seek to prevent or impede takeover
bids for the Company's activities or shares unless there are
justiable reasons to do so. Such justiable reasons may include
protecting the Company's employees or assets or ensuring that
the Company is not taken over at an unfairly low price.
If a takeover bid is launched for the shares in the Company,
the board shall release a statement providing shareholders with
relevant and reliable information, and a recommendation on
whether shareholders should or should not accept the offer.
15. Auditor
The general meeting appoints the auditor and approves the
auditor's fee.
The auditor's responsibility is to audit the annual accounts and
the annual report submitted by the board of directors and
the chief executive ofcer pursuant to the Auditors Act and
generally accepted accounting practices.
The auditor presents the main features of the plan for the
auditing work to the Audit Committee and the board of
directors each year. Meetings are held between the auditor and
the board of directors, either the full board or the chair, as
necessary.
The auditor will have annual meetings with the Audit Committee
to review the Company's control procedures.
The auditor will not take on assignments for the Company
that can lead to conicts of interest and will issue an annual
conrmation of his/her independence to the Audit Committee.
It is the board of directors' responsibility to maintain the
independent role of the auditor.
Valen, 21 March 2024
The board of directors of EQVA Group ASA
33
ANNUAL REPORT 2023
https://fossbergkraft.no/wp-content/uploads/2019/03/
fossefall.jpg
Sustainability
report
34ANNUAL REPORT 2023
Key figures and highlights
• 111 customer projects within upgrading to more sustainable systems carried out by BKS in 2023
• 1 hydro power plant sold and developed by our subsidiary Fossberg Kraft in 2023
• EQVA has 355 FTEs by the end of 2023
• In 2023, BKS has established their first ESG report, and their second reviewed ESG report will be
published with the annual year report at end of March 2023.
EQVA’s approach to working on ESG
In EQVA, we are committed to ensure that our business is sustainable in terms of the economy, environment, and
society. As a knowledge-based active owner of engineering, construction, and service companies, we strive to be a
contributor to the green transition across all parts of our group.
We recognise that sustainable development is essential for the long-term success of our business and the well-being
of our society. As such, we are committed to nding innovative solutions that reduce our carbon footprint, minimise
environmental impact, and promote economic growth.
Society
Environment Economy
SOCIETY
ENVIRONMENT ECONOMY
ESG
35
ANNUAL REPORT 2023
Sustainability in progress
At EQVA, sustainability is at the core of our operations. We will remain committed to achieving our sustainability
goals and maintaining transparency in our reporting with reference to the GRI Standard. Through our actions and
initiatives, we aim to make a positive and lasting impact on the companies in our group, our employees, value chain,
local communities, and the world at large.
In November 2023, EQVA made the strategic decision to divest our shipyard Havyard Leirvik. The transaction allows
EQVA to concentrate on further development of its portfolio companies BKS and Fossberg Kraft. Additionally, as an
investment company and active owner, EQVA will be targeting new investment opportunities that contribute to the
green transition in maritime, power intensive and renewable industries. As Havyard Leirvik is no longer a part of the
group, we will not highlight them throughout this report.
One of our subsidiaries, BKS Industri AS, achieved in December 2021 the ISO 14001 environmental certicate, which
recognises their efforts to reduce their environmental impact. This international standard requires companies to
set objectives and actively work to reduce their environmental impact, particularly in areas such as greenhouse gas
emissions and chemical usage. Furthermore, the company has recently acquired the ISO 45001:2018 certication,
emphasizing its commitment to upholding occupational health and safety standards. ISO 45001 mandates the
implementation of an effective management system, underscoring BKS's dedication to fostering enhanced and
safer working environments. External parties regularly monitor and evaluate our activities related to certication
according to ISO standards.
Throughout the year 2023 we have been working towards nalizing our rst sustainability report to be published
together with the annual report 2023.
Find the complete REPORT HERE
ESG
36ANNUAL REPORT 2023
ESG
Reporting framework
EQVA has not publicly released an ESG report in accordance with reporting standards,
but we acknowledge the importance of ESG reporting and has in 2022 taken the initial
steps to begin reporting in accordance with standards by the end of 2023. The GRI
framework will be used to ensure that the reporting for 2023 is in reference to the GRI
standards.
EQVA’s subsidiaries BKS Holding and Havyard Leirvik have initiated separate sustainability
reporting processes and plan to publicly release their sustainability reports in 2023.
BKS Holding will provide an overall report including its subsidiaries; BKS Industri
AS, BKS Power & Automation AS, Zenit Engineering AS, BKS VVS AS, and Marine
Support AS. Individual company reporting for these subsidiaries will be implemented
once the EU's proposed reporting directive (CSRD) is expanded to include reporting
requirements and attestation requirements, expected to occur in 2024/2025.
37
ANNUAL REPORT 2023
Financial
statements
38ANNUAL REPORT 2023
(NOK 1,000) Note 2023 2022
Revenues from contracts with customers 4,14,28 659 340 221 697
Other operating revenues 4,23 10 846 2 138
Operating income 670 185 223 836
Materials and consumables 15,21,28 275 452 78 296
Payroll expenses 5 273 345 117 857
Other operating expenses 5,6 95 803 49 531
Operating expenses 644 600 245 684
Operating profit/loss before depreciation and
amortisation (EBITDA)
25 586 -21 848
Impairment of non-current assets 0 0
Depreciation 4,11,12,13 15 111 7 099
Operating profit/loss (EBIT) 4 10 474 -28 947
Financial income 8 7 120 4 084
Financial expenses 8 -33 325 -19 643
Share of profit/ loss of associate 4,9 -3 061 668
Profit / loss before tax 4 -18 791 -43 837
Income tax expense 4,7 1 098 -14 879
Profit from continued operations -19 889 -28 958
Profit from discontinued operation 10,26 -1 913 9 310
Profit / loss for the Year 4 -21 802 -19 647
Attributable to :
Equity holders of parent -23 733 -21 410
Non-controlling interest 1 931 1 763
Total -21 802 -19 647
Earnings per share (NOK) 25 -0,33 -0,30
Diluted earnings per share (NOK) 25 -0,33 -0,30
Earnings pr. share from continued operations
Earnings per share (NOK) 25 -0,33 -0,40
Diluted earnings per share (NOK) 25 -0,33 -0,40
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
EQVA ASA
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
39
ANNUAL REPORT 2023
(NOK 1,000)
Note 2023 2022
Profit for the year -21 802 -19 647
Foreign currency translation differences 0 -2 038
Other comprehensive income 0 -2 038
Total comprehensive income -21 802 -21 685
Attributable to:
Equity holders of parent -23 733 -23 449
Non-controlling interest 1 931 1 763
Total -21 802 -21 685
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
EQVA ASA
40ANNUAL REPORT 2023
(NOK 1,000)
ASSETS
Note 2023 2022
Non-current assets
Deferred tax benefit 7 0 0
Goodwill 10,11 248 260 248 260
Licenses, R&D and customer relationships 11 29 319 32 208
Property, plant and equipments 12 111 840 128 927
Right of use assets 13 12 276 10 933
Investment in associates 9 21 319 25 544
Loan to associates 16 4 988 4 840
Investment in equity instruments measured at fair value
through profit and loss
2,16,19 0 16 163
Other non-current receivables 16,20 3 809 2 648
Total non-current assets 431 810 469 523
Current Assets
Inventory 1 7, 2 1 5 780 13 681
Accounts receivables 14,16,17,28 99 493 90 955
Other current receivables 16,20 22 096 25 552
Contract assets customer contracts 14,15,17 72 480 51 537
Cash and cash equivalents 16,17,22 35 984 61 117
Total current assets 235 833 242 843
TOTAL ASSETS 667 643 712 366
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EQVA ASA
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
41
ANNUAL REPORT 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EQUITY AND LIABILITIES
NOTE 2023 2022
Equity
Share capital 24 3 599 3 599
Share premium reserve 195 175 195 175
Treasury shares -30 -16
Retained earnings 86 360 109 991
Non-controlling interests 8,9,10 5 319 3 387
Total equity 290 424 312 136
Non-current liabilities
Deferred tax liability 7 0 0
Lease liabilities 13,16 8 870 9 624
Loans and borrowings 16,17 125 293 152 868
Other long-term liabilities 17 41 770 41 474
Total non-current liabilities 175 932 203 967
Current liabilities
Accounts payables 16,28 55 666 56 147
Tax payables 7 1 579 1 360
Public duties payables 28 820 37 524
Loans and borrowings, current 16,17 78 423 22498
Contract liabilities 14,28 0 861
Lease liabilities 13,16 3 380 1 619
Other current liabilities 14,15,17,18,27 33 420 76 255
Total current liabilities 201 288 196 263
Total liabilities 377 220 400 230
TOTAL EQUITY AND LIABILITIES 667 643 712 366
Valen, 21 March 2024
The Board of Directors and CEO
EQVA ASA
Even Matre Ellingsen
Chairman of the Board of Directors
Anne Soe Myrmel Bruun-Olsen
Board member
Vegard Sævik
Board member
Rune Skarveland
Board member
Ellen Merete Hanetho
Board member
Erik Høyvik
CEO
Kari Markhus
Board member
employee representative
Tomasz Bartlomiej Wesierski
Board member
employee representative
42ANNUAL REPORT 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EQVA ASA
(NOK 1,000)
Note
Share
capital
Share
premium
reserve
Treasury
shares
Retained
earnings
Total Non-
controlling
interest
Total equity
January 1, 2023 3 599 195 175 -16 109 991 308 753 3 387 312 136
Profit for the Year 4
0 0 0
-23 733 -23 733 1 932 -21 802
Other comprehensive income 4
0
Total comprehensive income 4
0 0 0
-23 733 -23 733 1 931 -21 802
Other
10
0 0 0 100 100 0 100
Repurchase of own shares 0 0
-14
0 -14 0 -14
Minority interests from transaction 0 0
December 31, 2023 3 599 195 175 -30
86 361 285 105
5 319 290 424
(NOK 1,000)
Note
Share
capital
Share
premium
reserve
Treasury
shares
Retained
earnings
Total Non-
controlling
interest
Total equity
January 1, 2022 1 239 22 535 -3 274 042 297 814 0 297 814
Profit for the Year 4 -21 410 -21 410 1 763 -19 647
Other comprehensive income 4 -2 038 -2 038 -2 038
Total comprehensive income 4
0 0 0
-23 449 -23 449 1 763 -21 685
Issue of new shares in EQVA in connection with
acquisitions of BKS and Fossberg Kraft
10 2 360 172 640
175 000 1 624 176 624
Dividend distribution shares in HAV Group ASA
10
-140 600 -140 600 -140 600
Repurchase of own shares
-13
-13 -13
Minority interests from transaction 0 0
December 31, 2022 3 599 195 175 -16
109 991 308 753
3 387 312 136
*Minority interest came following the aquisition of HG Group and BKS
43
ANNUAL REPORT 2023
CONSOLIDATED STATEMENT OF CASHFLOW
CONSOLIDATED STATEMENT OF CASHFLOW
EQVA ASA
(NOK 1,000) Note 2023 2022
CASH FLOW FROM OPERATIONS
Profit/ (loss) after tax -21 802 -19 647
Income tax expense 7 1 098 -15 796
Paid tax 7 -1 360 0
Depreciation 11,12 12 836 7 524
Net financial items 26 205 16 907
Gain on disposal discontinued operations 26 -13 008 0
Profit and loss items without cash effect in discontinued operations 10 1 401 0
Depreciation charge of right-of-use assets 13 2 276 2 335
Share of (profit)/loss from associates 9 3 061 -668
Changes in inventory 21 4 679 -4 719
Changes in accounts receivables -18 208 9 775
Changes in accounts payable 4 993 -25 780
Changes in customer contracts, asset -19 953 -51 537
Changes in customer contracts, liabilities -4 030 -14 116
Changes in restricted deposits 692 68 318
Changes in other current receivables/liabilities 17 -29 880 -5 603
Net cash flow from/ (to) operating activities -51 000 -33 006
CASH FLOW FROM INVESTMENTS
Investments in property, plant and equipment 12 -5 613 -3 204
Sale of property 12 0 7 002
Investment in intangible assets 11 0 -50
Net R&D grants 23 2 745 824
Changes receivables to associates 16 231 -502
Cash effect from aquisition of new companies 10 0 -6 441
Sale of subsidiary 26 9 231 0
Disposal of financial assets 19 13 163 0
Cash in HPR at time for loss of control 0 -18 824
Changes in long term receivables 20 -1 160 -4 922
Net cash flow used in investing activities 18 597 -26 118
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of lease liabilities 13 -2 549 -1 629
New bank debt 17 81 220 510
Instalments on bank debt 17 -57 453 -7 500
Interest payment 17 -16 795 -11 214
Aquired own shares 24 -1 178 -890
Acquisition of shares non-controlling interests 10 -376 0
Repaid loan of subsidiary 26 5 967 0
Sale of shares in HAV Group ASA net of trancaction costs 10 0 3 010
Changes in other long-term liabilities 26 -874 -15 460
Net cash flow from/ (used in) financing activities 7 962 -33 173
Net change in cash and cash equivalents -24 441 -92 297
Cash and cash equivalents at start of the year 47 512 139 809
Cash and cash equivalents at end of the year 22 23 071 47 512
Restricted cash at end of year 12 913 13 605
Cash and cash equivalent recognised in the balance sheet 35 984 61 117
44ANNUAL REPORT 2023
NOTES
NOTES
EQVA ASA
Note
1 General information
2 Significant accounting policies
3 Significant judgements and estimates
4 Segment information
5 Salary, fees, number of employees etc.
6 Other operating expenses
7 Income tax
8 Financial income and financial expenses
9 Subsidiaries, associates and other financial investments
10 Business combinations and other purchases in the group
11 Intangible assets
12 Property, plant and equipment
13 Leasing
14 Revenue from contracts with customers
15 Losses to completion
16 Financial risk management
17 Interest bearing debt
18 Other current liabilities
19 Non-current financial investments
20 Other current and non-current receivables
21 Inventory
22 Cash and cash equivalents
23 Government grants
24 Share capital
25 Earnings per share
26 Discontinued operation
27 Contingencies and provisions
28 Related party transactions
29 Sustainability and climate risk
30 Subsequents events
45
ANNUAL REPORT 2023
1. GENERAL INFORMATION
EQVA ASA is a public limited company based in Norway, and
its head office is in Valen, Kvinnherad.
EQVA ASA is a knowledge-based active owner of industrial
service companies that contribute to the green transition in
maritime, power intensive and renewable industries.
EQVA takes responsibility for developing technological and
commercial solutions, which provide unique advantages for
our customers within land based- and maritime industry. The
group has a well-diversified product- and market portfolio, and
further growth will be established through a combination of
company-based development, utilization of synergies between
the companies in the group and value-creating M&A activities.
In November 2023, EQVA divested its shipyard company
Havyard Leirvik (HLE) to Tersan. The transaction included 3
companies - Havyard Leirvik Holding AS, Havyard Leirvik AS
(shipyard) and Havyard Leirvik Eiendom AS. The segment
Maritime Services, which included HLE, will no longer be a
reportable segment (discontinued operations).
In addition, EQVA formed its Real Estate segment in Q1 2023.
The new group structure is operationally organized in 3
segments (reporting structure):
• Products, solutions & renewables which includes BKS and
Fossberg Kraft. BKS provides service- and maintenance
assignments to the land-based and maritime industry,
while Fossberg Kraft is specialized in the establishment and
operation of small-scale hydropower plants.
• Real Estate which includes EQVA’s real estate properties.
The properties are predominantly industrial related.
• Other in which the parent company is the main entity
– the segment also includes companies without regular
operations and eliminations of intra-group transactions.
The EQVA group include a total of 355 FTEs as of December
31, 2023.
ACCOUNTS FOR 2023 ARE PRESENTED IN ENGLISH.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
The consolidated financial statements of EQVA ASA and its
subsidiaries (the "Group") are prepared in accordance with
IFRS® Accounting Standards as adopted by the EU.
The consolidated financial statements have been prepared on
a historical cost basis except for certain financial assets and
liabilities (including derivative instruments) that are measured
at fair value.
The consolidated financial statements are presented in NOK
1,000. Figures in all notes to the financial statements are also
presented in NOK 1,000 unless otherwise specified.
The consolidated accounts were approved by the Board of
Directors on 21 March 2024.
New and amended standards adopted by the Group
The group applied for the first time certain amendments to
standards, which are effective for annual periods beginning on
or after 1 January 2023. The amended standards that applied
for the first time in 2023 did not have any material impact on
the consolidated financial statements of 2023, except for:
Disclosure of Accounting Policies - Amendments to IAS 1 and
IFRS Practice Statement 2
In February 2021, the IASB issued amendments to IAS 1 and
IFRS Practice Statement 2 Making Materiality Judgements, in
which it provides guidance and examples to help entities apply
materiality judgements to accounting policy disclosures. The
amendments aim to help entities provide accounting policy
disclosures that are more useful by replacing the requirement
for entities to disclose their 'significant' accounting policies
with a requirement to disclose their 'material' accounting
policies and adding guidance on how entities apply the
concept of materiality in making decisions about accounting
policy disclosures. The amendments to IAS 1 are effective for
these consolidated financial statements beginning on 1 January
2023.
The group has not made any voluntary accounting policy
changes in 2023.
NOTES
46ANNUAL REPORT 2023
Standards and interpretations issued but not yet effective
The group has not early adopted any accounting standard,
interpretation or amendment that has been issued but is not
yet effective. The group intends to adopt new and amended
standards and interpretations, if relevant, when they become
effective.
The group does not expect any significant effects related to
upcoming standards and amendments. The group is currently
revisiting their accounting policy information disclosures to
ensure consistency with the amended requirements.
2.2 Basis of consolidation
The consolidated financial statements include EQVA ASA and
companies in which EQVA ASA has a controlling influence.
Controlling interest is normally achieved when the Group has
control over the enterprise and can use it to influence the
return, is exposed to or has variable return rights, and the
Group is able to exercise effective control over the company.
Note 9 shows an overview of subsidiaries.
A change in ownership interest in a subsidiary, without loss of
control, is accounted for as an equity transaction.
2.3 Investments in associates
An associated company is an entity in which the group has
significant influence. Significant influence normally exists
when the Group has 20 % to 50 % of the voting rights unless
other terms and conditions affect the Group’s influence. The
investments in associates are accounted for using the equity
method. Such investments are initially recognized at cost.
Cost includes the purchase price and other costs directly
attributable to the acquisition such as professional fees and
transaction costs.
The financial statements of the associates are prepared for
the same reporting period as the Group. When necessary,
adjustments are made to bring the accounting policies in line
with those of the group.
After application of the equity method, the Group determines
whether it is necessary to recognize an impairment loss.
2.4 Presentation currency and functional currency
The Group's consolidated financial statements are presented in
NOK, which is also the parent company's functional currency.
Transactions in foreign currency are initially recorded by the
Group entities' functional currency at the exchange rate at the
time of the transaction.
2.5 Segments
Segments are identified based on the organization and
reporting structure used by management including top
decision maker. Operating segments are components of a
business that are evaluated regularly by the chief operating
decision-maker for the purpose of assessing performance and
allocating (to assess performance and allocate) resources. The
Group’s chief operating decision-maker is the CEO.
The group has 3 reportable segments after a change in the
reporting structure in 2023:
1. Products, solutions & renewables
2. Real estate, and
3. Other
Costs not directly attributable to the segments Real estate or
Products, solutions & renewables, are related to the segment
"Other", ref Note 4 Segment information.
The group divides the customers into geographical areas based
on the customers' nationalities. The areas are Norway and the
other.
Maritime Services segment is not included in the reporting
structure in 2023 as the shipyard Hayard Leirvik was sold
to Tersan in November 2023 (discontinued operations).
Discontinued operations are disclosed in note 26.
2.6 Related parties
Parties are related if one party has the ability, directly or
indirectly, to control the other party or exercise significant
influence over the party in making financial and operating
decisions. Parties are also related if they are subject to
common control or common significant influence.
Transactions with related parties are disclosed in note 28.
2.7 Revenue recognition
The Group recognizes revenue as the Group fulfills a delivery
obligation upon transfer of goods or services to the customer.
The Group's operating revenues are related to the following
income streams:
• Conversion of vessels (or other large, fixed price projects)
• Service - and maintenance assignments to land based – and
maritime industry.
• Hydro power Plants – development, sale and operation
Conversion of vessels (e.g hybridization/electrification or
other large, fixed price projects)
Conversion contracts are based on industry standards. An
example of a contract can be hybridization/electrification
NOTES
47
ANNUAL REPORT 2023
of ferries. The Group does not recognize revenue from
Conversion of vessels from Q3 2023 as the shipyard Hayard
Leirvik was sold to Tersan in November 2023 (discontinued
operations). Discontinued operations are disclosed in note 26.
A signed sales contract should be in place before purchase,
construction and other startup cost apply. The customer can
only terminate the contract because of a breach by EQVA
(Havyard Leirvik).
The rationale for using the method of recognition of revenue
over time, and not at the time of delivery, is based on the
assumption that we are adding value to an asset controlled by
the customer.
The Group uses accrued costs against expected total costs
as measure of progress. Relevant costs in the assessment are
costs that are directly related to the individual project and
costs that can be attributed to the contract's activity in general
and can be allocated to the contract. This includes labor costs
(including construction supervision), the cost of materials used
in the construction and equipment acquired, depreciation of
equipment used on the contract, and if relevant the cost of
design and technical assistance directly related to the contract.
For a production that is performed by subcontractors, a
concrete assessment is made in relation to when one takes
over control of what subcontractors’ manufacture. Depending
on the facts and contract terms, this can be both as the
subcontractor produces or when there is a physical delivery
from the subcontractor.
The same costs as described above are included in the
assessment of whether one has an onerous contract and
associated measurement of estimated losses. Costs of errors
in production or abnormal shrinkage of material are treated
as period costs and do not generate progress. As there are
normally greater uncertainty in measuring the outcome of the
contract in the early stages of production, revenue recognition
is normally limited to accrued costs until the percentage of
completion reaches 20%. If the uncertainty in a project is so
large that it is not possible to estimate the potential outcome,
no revenue is recognized until the uncertainty is reduced.
Accrued costs in this phase is presented as inventory if criteria
for recognition as inventory is met. If the costs do not qualify
as inventory, it is recognized as operating expenses.
Change orders usually arises as a result of minor modifications
to the vessel under conversion and will therefore normally
not be considered as a separate contract obligation, neither
when considered in combination with remaining construction
of the ship. Change orders are therefore normally accounted
for as a change of existing contract where transaction price
and progress are updated when the change order is approved
by both parties. Payment terms for conversion contracts vary
somewhat depending on the ship type.
Service - and maintenance assignments to land based – and
maritime industry
Contracts for Service - and maintenance assignments to
land based – and/or maritime industry usually have a variable
payment facility where customers can pay for the number of
hours and use of materials with a supplement. Larger projects
may be based on fixed price. The contracts normally have a
duration from a few weeks up to some months. For variable-
fee contracts, the amount that one has the right to invoice
on the balance sheet date is recognized as income. For fixed-
price contracts, a measure of progress like that for Conversion
assignments – ref above - is used.
Power plants
Power plants under development are usually organized in
separate legal entities (SPVs) The ownership of the SPV will
be transferred to the buyer when the project is completed,
and the SPV will be consolidated as a subsidiary during the
construction phase. Development and construction of power
plants are output of the ordinary activities of the company, and
the buyer is considered to be a customer. Management has
therefore concluded that the transaction should be accounted
within the scope of IFRS 15 once a firm contract is signed. The
customer can only terminate the contract in if the Group fails
to deliver as promised in the contract.
EQVA has an enforceable right to payment, and the asset
under construction is without alternative use because of
contractual limitations, and revenues are therefore recognized
over time. The Group use cost incurred against expected
total construction cost as measure of progress. The contracts
include standard LD penalties for late delivery, but these are
capped at a moderate level. When the shares in the SPV are
transferred at completion, the share price is determined based
on the agreed price of the power plant, adjusted for any net
debt and working capital items in the SPV.
Services related to operations and maintenance of power
plants owned by a third party are normally based on contracts
with a fixed fee for a defined period. Revenues are recognized
in each accounting period. If a power plant starts power
production before delivered to a client, these revenues are
presented as sales revenues. Costs related to the power
production are presented as operational costs.
NOTES
48ANNUAL REPORT 2023
2.8 Taxes
Tax expense for the period comprises current and deferred
tax. Tax is recognized in the income statement, except to the
extent that it relates to items recognized directly in equity. In
this case, the tax is also recognized in equity, respectively.
The current income tax charge is calculated based on the tax
laws enacted or substantively enacted at the balance sheet
date in the countries where the company’s subsidiaries and
associates operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect
to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate
based on amounts expected to be paid to the tax authorities.
Deferred income tax is recognized, on temporary differences
arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements.
However, the deferred income tax is not accounted for if
it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time
of the transaction affects neither accounting nor taxable profit
nor loss.
Deferred income tax assets are recognized only to the extent
that it is probable that future taxable profit will be available
against which the temporary differences can be utilized.
Deferred income tax is provided on temporary differences
arising on investments in subsidiaries and associates, except
where the timing of the reversal of the temporary difference is
controlled by the group and it is probable that the temporary
difference will not reverse in the foreseeable future.
2.9 Property, plant and equipment
Property, plant and equipment is stated in the balance sheet
at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Cost includes expenditures that are
directly attributable to the acquisition of the item of property,
plant and equipment. Depreciation is calculated on a straight-
line basis over the estimated useful lives of the assets as follows:
• Buildings 10-40 years
• Machinery 3-10 years
• Operating equipment 3- 10 years
When significant parts of property and equipment are required
to be replaced at intervals, the Group recognizes such parts
as individual assets with specific useful lives and depreciates
them accordingly. All other repair and maintenance costs are
recognized in profit and loss as incurred.
2.10 Impairment of property, plant and equipment
Assessment of indications that assets may be impaired is
made at the end of each reporting period. If indications exist,
recoverable amount of the asset is estimated. If carrying value
exceeds the estimated recoverable amount, the asset is written
down to its recoverable amount. Recoverable amount is the
higher of fair value less costs to sell and value in use. The write-
down may be reversed by up to an amount corresponding to
the write-down, if the book value is lower than the recoverable
amount.
Assets are considered as part of a Segment. Impairment is
done at Segment-level if the impairment test does not justify
the carrying amount of the Segment including goodwill.
2.11 Intangible assets
Intangible assets acquired separately are measured on initial
recognition at cost. The cost of intangible assets acquired
in a business combination is their fair value at the date of
acquisition. Following initial recognition, intangible assets
are carried at cost less any accumulated amortization
and accumulated impairment losses. Internally generated
intangible assets, excluding capitalized development costs, are
not capitalized and expenditure is reflected in profit and loss in
the period in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite
or indefinite. Intangible assets with finite lives are amortized
over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may
be impaired. The amortization period and the amortization
method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period.
Intangible assets with indefinite useful lives are not amortized,
but are tested for impairment annually, either individually or at
the cash-generating unit level. The assessment of indefinite life
is reviewed annually to determine whether the indefinite life
continues to be supportable.
Research and development costs (R&D)
Research costs are expensed as incurred. Development
expenditures on an individual project are recognized as an
intangible asset when the Group can demonstrate:
• The technical feasibility of completing the intangible asset
so that it will be available for use or sale
• Its intention to complete and its ability to use or sell the asset
• How the asset will generate future economic benefits
• The availability of resources to complete the asset
• The ability to measure reliably the expenditure during
development.
NOTES
49
ANNUAL REPORT 2023
Amortization of the asset begins when development is
complete, and the asset is available for use. It is amortized
over the period of expected future benefit. Amortization is
recorded in cost of sales. During the period of development,
the asset is tested for impairment annually.
The main part of the research and development costs that
are recognized as an intangible asset are related to the
development of new ship designs and fish handling equipment.
2.12 Goodwill
Excess value resulting from acquisition of an enterprise that
cannot be allocated to identifiable assets or liabilities on the
date of acquisition is classified as goodwill in the balance sheet.
Goodwill is initially measured at cost. Goodwill is calculated
on a 100 % ownership. In regards of investments in associated
companies, goodwill is included in the cost price of the
investments.
After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. Goodwill is allocated
to Segment level for the purpose of impairment testing. The
impairment testing is described more in detail in note 11.
The goodwill is tested for impairment at each closing of
accounts. An assessment is made whether the discounted
cash flow relating to goodwill exceeds the value of the goodwill
recognized in the accounts. If the discounted cash flow is
lower than the recognized value, goodwill will be written down
to the higher of value in use and fair value less cost to sell.
2.13 Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes
a substantial period to get ready for its intended use or sale
are capitalized as part of the cost of the respective assets. All
other borrowing costs are expensed in the period in which
they occur. Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing of funds.
2.14 Inventories
Inventories of purchased goods are valued at the lower of
acquisition cost and net realizable value. The acquisition cost
is assigned using the FIFO method and includes expenses
incurred on acquisition of the goods and the cost of bringing
the goods to their present state and location. Finished goods
and work in progress are valued at full cost.
2.15 Treasury shares
Own equity instruments that are reacquired (treasury shares)
are recognized at cost and deducted from equity. No gain or
loss is recognized in profit or loss on the purchase, sale, issue
or cancellation of the Group’s own equity instruments. Any
difference between the carrying amount and the consideration,
if reissued, is recognized in retained earnings. Voting rights
related to treasury shares are nullified for the Group and no
dividends are allocated to them.
2.16 Contract assets and liabilities
Recognized revenue within the scope of IFRS 15 are presented
as a contract asset in the balance sheet if the right to payment
is conditional of future performance (usually to complete
the project). If the right to payment is unconditional, the
recognized amount is presented as accounts receivable.
Advance payments received are presented as a reduction of
the contract asset on a contract level. If advance payments
received are higher than recognized revenue for a specific
contract, the net is presented as a contract liability in the
balance sheet. Credit loss of contract assets are like those for
accounts receivable.
2.17 Financial Instruments.
Investments in shares
Investments in shares are measured at fair value through profit
or loss, except for shares in associated companies.
Receivables and bank deposits
The Group maintains its accounts receivable and other
receivables in a business model where the purpose is to recover
contractual cash flows, so that these are measured at amortized
cost. Receivables are classified as current assets. Receivables
include "accounts receivable and other receivables", as well
as cash and cash equivalents in the balance sheet. Financial
assets are derecognized when the right to receive cash flows
from the investment ceases.
Loan
Loans are initially recognized at fair value when the loan is
disbursed, adjusted for directly attributable transaction costs.
In subsequent periods, loans are recognized at amortized cost
calculated using the effective interest rate method (EIR). The
difference between the loan amount paid out (less transaction
costs) and the redemption value is thus recognized in the
income statement over the term of the loan. Effective interest
is recognized in the income statement unless it is recognized
in the balance sheet on the purchase/ manufacture of a fixed
asset or other qualifying asset. First-year repayments on long-
term debt are presented as short-term debt.
NOTES
50ANNUAL REPORT 2023
Accounts payable
Trade payables are recognized at fair value on initial recognition.
In agreements that reduce the value of outstanding debt, the
value of the debt is reduced and recorded as income. Upon
subsequent calculation of the value of the agreement, changes
are entered as an adjustment of the debt with a counter-item
in the income statement.
2.18 Provisions
Provisions are recognized when there is a present obligation
(legal or constructive) because of a past event, it is probable
that the Group will be required to settle the obligation, and
a reliable estimate can be made of the amount. A future
settlement of the obligation will probably require an outflow of
economic resources.
Provisions usually relates to warranties. Provisions for warranty-
related costs are recognized when the product is sold, or
service provided to the customer. Initial recognition is based
on historical experience. The initial estimate of warranty-
related costs is revised annually. The normal warranty period
is 12-24 months from delivery of projects. Key sub-suppliers
have warranty responsibilities for their deliveries into projects.
–EQVA`s warranty obligations are related to the works carried
out of EQVA in the projects.
2.19 Cash flow statements
The cash flow statements are based on the indirect method.
2.20 Government grants
Government grants are recognized when it is reasonably
certain that the company will meet the conditions stipulated
for the grants and that the grants will be received. Operating
grants are recognized systematically during the grant period.
Grants are deducted from the cost which the grant is meant
to cover and are recognized as reduction of other operating
expenses.
2.21 Discontinued operations
Discontinued operations are part of the Group sold or
classified as held for sale and represent a significant part of one
of the Group's operations or geographical areas. The results of
the divested business are presented separately in the income
statement.
Note 3 - SIGNIFICANT JUDGEMENTS AND ESTIMATES
The preparation of the Group's consolidated financial
statements requires management to make judgments and
estimates. These estimates are based on the actual underlying
business, its present and forecast profitability over time, and
expectations about external factors. Uncertainty about these
estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future periods.
The following judgements and estimates have the most
significant risk of resulting in a material adjustment in the next
financial statements:
3.1 Revenue recognition
To determine how the Group's customer conversion contracts
should be recognized as income, the management has made
several critical assessments. The Group recognizes revenue
as the Group fulfills a delivery obligation upon transfer of
goods or services to the customer. The contracts define
the transaction price but include clauses that may result in
an adjustment of the transaction price as a result of delayed
delivery or deviation from agreed specifications. The maximum
transaction price adjustment is defined in the contracts, and
normally constitutes a small part of the transaction price.
As the adjustment clauses are rarely triggered and can only
lead to limited transaction price adjustments, the contract
price is used as the transaction price, unless one has specific
information that the adjustment clauses are triggered.
The Group does not recognize revenue from Conversion
of vessels from Q3 2023 as the shipyard Hayard Leirvik was
sold to Tersan in November 2023 (discontinued operations).
Discontinued operations are disclosed in note 26.
3.2 Degree of completion and provision for loss contracts
A part of EQVA's business consists of executing revenue-
recognition projects that are recognized over time. Revenue
recognition over time is based on estimates and assessments
made at the discretion of management.
Revenue recognition and cost estimates depend upon
variables such as steel prices, labor costs and availability, and
other production inputs. The Group must also evaluate and
estimate the outcome of variation orders, contract claims and
requests from customers to modify contractual terms which
can involve complex negotiations with customers.
3.3 Impairment of non-financial assets including goodwill
An impairment exists when the carrying value of an asset or
cash generating unit (CGU) exceeds its recoverable amount,
NOTES
51
ANNUAL REPORT 2023
which is the higher of its fair value less costs to sell and its
value in use. The fair value less cost to sell calculation is
based on available data from binding sales transactions,
conducted at arm’s length, for similar assets or observable
market prices less incremental costs for disposing the asset.
The value in use calculation is based on a discounted cash
flow model. The cash flows are derived from the budget for
the next five years and do not include restructuring activities
that the Group is not yet committed to or significant future
investments that will enhance the asset’s performance of the
CGU being tested. The recoverable amount is most sensitive
to the discount rate used for the discounted cash flow model
as well as the expected future cash-inflows and the growth rate
used for extrapolation purposes. The key assumptions used to
determine the recoverable amount for the different CGUs,
including a sensitivity analysis, are disclosed, and further
explained in note 11.
3.4 Power plants
For power plants under construction, these are organized in
separate companies where incurred costs are entered on the
balance sheet as operating assets/facilities under construction.
In the group accounts, revenues in these projects are
recognized based on estimates of progress, revenues and costs
for the assets under construction.
3.5 Evaluation of acquiring part in transaction
After the acquisition of BKS and Fossberg Kraft, an evaluation
has been done to identify the acquiring part in the transaction.
Key factors considered in the evaluation were. Ownership
structure of the new group, board of directors and group
management structure. Based on an overall assessment,
EQVA ASA was identified as the acquirer from an accounting
perspective.
4. SEGMENT INFORMATION
The Group's main activities are:
• Products, solutions & renewables which includes BKS and
Fossberg Kraft. BKS provides service- and maintenance
assignments to the land-based and maritime industry,
while Fossberg Kraft is specialized in the establishment and
operation of small-scale hydropower plants.
• Real Estate which includes EQVA’s real estate properties.
The properties are predominantly industrial related.
• Other in which the parent company is the main entity –
the segment also includes companies without regular
operations and eliminations of intra-group transactions.
See note 9 for a specification of each segment at company
level.
The group divides the customers into geographical areas based
on the customers' nationalities. The areas are Norway, Europe
without Norway and Others.
The Group's customer base consists of a wide range of
companies. The Group's three largest customers in 2023
compose 36% of total Group revenue.
Sales to customers that account for more than 10% of total
sales revenues is presented below:
NOTES
Customer Segment Revenue2023 20221. Products, solutions & renewables-127 45128 5112. Products, solutions & renewables 58 45252 3703. Products, solutions & renewables58 04234 202
52ANNUAL REPORT 2023
For more segment details see note 1.
Transfer prices between operating segments are basis in a manner similar to transactions with third parties.
The accounting principles for segment reporting correspond to those used by the group, with the exception of discontinued
operations which are treated in the same way as continuing operations in segment reporting.
"Other" contains parent company items and elimination of intra-group transactions.
NOTES
2023(NOK million)Maritime Products, Real Other / DiscontinuedEQVA ASA servicessolutions & estateEliminationOperations* renewablesOperating revenues, External 107,6 6 59,3 0,0 0,0 -107,6 6 5 9, 3Operating revenues, Internal 0,0 10,8 10,1 -10,1 0,0 10,8Operating income 107,6 670,1 10,1 -10,1 -107,6 670,2EBITDA - 1 7, 1 38,2 9, 0 -18,0 13,5 25,6Depreciation 1,4 8,9 3,0 3,3 -1,4 15,1Operating profit/(loss) (EBIT) -18,5 2 9, 3 6,1 -21,3 14,9 10,5Net financial items 13,0 -8,2 -2,4 -15,6 -13,0 -26,2Share of profit/(loss) from0,0 0,0 0,0 -3,1 0,0 -3,1associateProfit/(Loss) before tax -5,5 21,1 3,6 -40,0 1,9 -18,8Income tax expense 0,0 1,1 0,0 0,0 0,0 1,1Profit/(Loss) -5,5 20,0 3,6 -40,0 1,9 -19,9Total assets 0,0 336,0 119,3 212,3 667,6Equity 0,0 44,6 55,5 192,2 292,4Liabilities 0,0 291,4 63,8 20,1 375,3Addition PP&E and intangibles* 0,0 5,6 0,0 0,0 5,6Geographical areas Norway Other TotalOperating revenues 619,8 50,3 670,2
53
ANNUAL REPORT 2023
"Other" contains parent company items and elimination of intra-group transactions.
*Discontinued Operations contain the companies within Maritime Services
(Havyard Leirvik AS), Havyard Leirvik Holding AS and the real estate property Havyard Leirvik Eiendom AS.
2022(NOK million)Maritime services Products, solutions & Other / DiscontinuedEQVA ASArenewablesEliminationOperations*Operating revenues, External 235,2 219,5 2,2 -235,2 221,7Operating revenues, Internal 0,0 0,0 2,1 0,0 2,1Operating income 235,2 219,5 4,3 -235,2 223,8EBITDA 12,9 9,3 -31,1 -12,9 -21,8Depreciation 2,8 6,9 0,1 -2,8 7,1Operating profit/(loss) (EBIT) 10,1 2,3 -31,3 -10,1 -29,0Net financial items -1,3 0,6 -16,2 1,3 -15,6Share of profit/(loss) from0,0 0,0 0,7 0,0 0,7associateProfit/(Loss) before tax 8,7 2,9 -46,8 -8,7 -43,8Income tax expense -0,4 0,0 -14,9 0,4 -14,9Profit/(Loss) 9,1 2,9 -31,9 -9,1 -29,0(NOK million)Maritime services Products, solutions & Other / Discontinued EQVA ASArenewablesEliminationOperations*Total assets 161,8 315,5 235,1 712,4Equity 39,6 53,7 218,8 312,1Liabilities 122,3 261,7 16,2 400,2Addition PP&E and intangibles* 0,5 2,5 0,3 3,2Geographical areas Norway Other Restate TotalOperating revenues 458,9 0,0 -235,1 223,8
NOTES
54ANNUAL REPORT 2023
5. SALARY, FEES, NUMBER OF EMPLOYEES ETC.
The Group has a defined contribution plan covering all employees. The Group's pension scheme satisfies the requirements of the Act
on Compulsory Occupational Pensions. Pension costs for the Group's defined contribution plans are expensed on a continuous basis
with earnings for the employees. The Group's duty is limited to the payment of agreed contribution and where the actuarial risk and
investment risk fall on the individual employee.
Incentive programs established in EQVA
The Group has established a incentiv arrangement (bonus) which applies to leaders and key personnel in the Group. The payments
depends on, among others, group performance (e.g reported EBITDA measured against budgeted EBITDA). The payments are expensed
as salaries. There has been no payments in 2023
Remuneration to key management personnel and the Board of Directors:
(NOK 1,000)Payroll expenses 2023 2022Wages 217 505 98 001Employer's part of social security costs 27 116 12 041Pension, contribution plans 12 556 4 381Other benefits 16 167 3 435Total salaries and social expenses 273 345 117 857FTEs at year end 355 351
* Eirik Sævareid was replaced by Ask Haukaas in September 2023.
Key management does not have bonus agreements or any share-based payment outside arrangements listed above.
Refers to the statement of remuneration of executive personell.
No loans or guarantees to the Group CEO or any member of the bord per 31/12/23.
EQVA ASA parent company: NOK 3 389 704 in board fees have been paid to external board members in 2023 (NOK 2 066
666 in 2022). Remuneration board members agreed 2022: Chariman NOK 800 000, board member NOK 350 000, employee
representative NOK 220 000, member nomination committee NOK 0, member compensation committee NOK 50 000 and
audit committee NOK 50 000. The group has established a board of director insurance.
Share-based payment
The establishment of the EQVA ASA Employee Option Plan was approved by the shareholders in 2022. The shareoption program
applies to Board of directors, leaders and key personnel in the Group. The participants receive 40 000 or 100 000 options,
dependent of level in the group. The program has effect from 1 January 2023. Options are granted under the plan for no
consideration and carry no dividend or voting rights.
NOTES
Erik Høyvik, Eirik Sævareid, Ask Haukaas, CEO CFO CFO*Management remunerations 2023 2022 2023 2022 2023 2022Wages 2 169 2183 1 211 750 547 0Pension 101 95 78 52 52 0Other benefits 152 146 144 6 10 0Total 2 422 2 424 1 433 809 609 0
55
ANNUAL REPORT 2023
NOTES
The granted options are accounted for as equity-settled transactions. The cost of equity-settled transactions is determined by the
fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized in employee benefits
expense, together with an increase in equity (other capital reserves), over the period in which the service and, where applicable,
the perofrmance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions
at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group's best
estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit and loss for
a period represents the movement in cumulative expense recognized as at the beginning and end of that period.
The granted options are vested over a period of three years. Employees must remain employed for a minimum three years to
fully earn their granted options. A certain proportion of the options will become exercisable each year over the course of those
three years. In accordance with IFRS 2 Share-based Payment, the Group recognize an expense over the vesting period. The total
estimated cost of the share-based payment is spread evenly over the vesting period, reflecting the manner in which the economic
benefits associated with the options are likely to flow to the company.
Set out below are summaries of options granted under the plan:
No options expired during the periods coverd by the above
Forfeited options was due to resignation from employees.
* There was no option program in 2022
Share options outstanding at the end of the year have the following expiry dates and exercise prices:
Weighted average remaining contractual life of options outstanding at end of period 2 years
Share Purchase Program
The Group has also established a new share purchase program where all employees can participate.
Employees can buy shares for up to NOK 20,000 with a discount of 20 %.
The share discount are expensed as salaries.
The share purchase program is conducted annually.
2023 2022 *Average Number of Average exercise Number of exercise priceoptionspriceoptionsAs at 1. January 0 - 0 0Granted during the year 3,01 1 740 000 0 0Excercised during thet year 0 - 0 0Forfeited during the year 3,01 -380 000 0 0As at 31. December 3,01 1 360 000 0 0Vested and exercisable at 31. December 0 - 0 0
Grant date Expiry date Excercise price Share options 31. Share options 31. Number of optionsDecember 2023December 2022January 2023 January 2026 3,64 1 360 000 0 0
56ANNUAL REPORT 2023
6. OTHER OPERATING EXPENSES
Auditor's fees are stated excluding VAT.
7. INCOME TAX
The parent company EQVA ASA is resident in Norway, where the corporate tax rate is 22 %, while some parts of the group are
taxed in other jurisdictions and other tax regimes.
The major componenents of income tax expense/ (income) for the year are:
Reconciliation of actual tax cost against expected tax cost in accordance with the ordinary Norwegian income tax rate of 22%.
(NOK 1,000) 2023 2022Consolidated income statementCurrent income tax:Taxes payable 1 579 1 360Changes in deferred tax -481 -16 239Income tax expense/(income) reported in the income statement 1 098 -14 879
(NOK 1,000)
Other operating expenses 2023 2022Rent expenses 14 270 6 799Office and administration expenses 11 028 7 424Plant, tools and equipment (including IT) 20 832 8 744Other assistance 564 1 768Travel and employee expenses 19 539 9 804Hired consultants 15 273 17 932Marketing and communication 5 523 835Other operating expenses 9 337 -2 007Total 95 803 49 531Fees to the auditor consists of the following services: 2023 2022Statutory audit 4 859 2 317Tax advice 315 0Total 5 738 4 084
NOTES
57
ANNUAL REPORT 2023
Deferred income tax and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities
and when the deferred income taxes relate to the same fiscal authority. Deferred tax assets are not recognised for companies with a recent
history of reported losses in accordance with IAS 12.
(NOK 1,000) 2023 2022Profit before tax -18 791 -43 836Tax expense 22% -4 134 -9 644Recognized tax expense 1 098 -14 674Difference between expected and recognised tax expense 5 232 -5 030Difference is related to:Income from investment in related parties 0 0Results in associates (22%/ 22%) -673 1 387Effect from discont operations 0 3 058Prior year adjustments 0 -205Addition deferred tax from aquisition 0 -16 425Loss on sale shares 0 1 434Impairment financial assets 0 2 066Other permanent differences -5 769 -10 556Tax payable from previous year 0 0Effect from public debt settlement 0 0Deferred tax asset not recognized 11 673 14 007Total 5 231 -5 235Deferred tax relates to the following temporary differences: 2023 2022(NOK 1,000)Non-current assets 28 382 33 668Customer contracts 28 267 30 933Leasing -34 -113Current assets -4 660 -4 252Accruals and provisions 0 -3 570Gain/(loss) account for deferral 10 758 12 544Cut off interest to related parties carried forward -19 629 -2 019Customer contracts 48 940 5 797Tax loss carried forward -333 202 -314 684Total temporary differences -241 178 -241 695Net deferred tax lability / deferred tax asset (-) -53 059 -53 173Deferred tax asset not recognised 53 059 53 173Deferred tax liability in the balance sheet 0 0
NOTES
58ANNUAL REPORT 2023
8. FINANCIAL INCOME AND FINANCIAL EXPENSES
9. DATTERSELSKAP, TILKNYTTEDE SELSKAP OG ANDRE
FINANSIELLE INVESTERINGER
(NOK 1,000)2023 2022Interest income 43 879Agio income 435 563Profit from share sale 6 601 2 636Other financial income 41 6Total financial income 7 120 4 084Interest expenses 19 679 9 916Agio loss 919 247Impairment of other financial assets 0 9 389Loss from share sale 5 380 -639Other financial expenses 7 346 729Total financial expenses 33 325 19 643Share of profit/loss of associate -3 061 668Net financial items -29 265 -14 890
NOTES
9. SUBSIDIARIES, ASSOCIATES AND OTHER FINANCIAL INVESTMENTS
2023EQVA ASA has the following owner-Ownership Business office Segment Currency Share Total ship in subsidiaries as of 31/12/2023share/capital equity voting share(1,000)(NOK 1,000)Havyard Ship Technology AS 100 % Leirvik i Sogn Other NOK 60 102 7 007Havyard Ship Invest AS 100 % Fosnavåg Other NOK 150 000 -5 950Norwegian Marine Systems AS 100 % Fosnavåg Other NOK 226 3 415Mjølstadneset Eiendom AS 100 % Fosnavåg Other NOK 143 9 801BKS Industri AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 54 52 258BKS Power & Automation AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 30 -3 507HG Group AS 100 % Valen i Kvinnherad Other NOK 690 213 586Handeland Industri AS 100 % Valen i Kvinnherad Other NOK 563 97 557BKS Holding AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 30 -6 397Fossberg Kraft AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 1 002 30 072Fossberg Kraft Produksjon AS 100 % Valen i Kvinnherad Other NOK 1 002 -19 521EQVA Eiendom Holding AS 100 % Sunde i Kvinnherrad Real estate NOK 49 31BKS Eigedom AS 100 % Sunde i Kvinnherrad Real estate NOK 168 8 736
59
ANNUAL REPORT 2023
NOTES
EQVA divested Havyard Leirvik Holding AS (HLH) to Tersan (Turkish shipyard company) in November 2023. The transaction included also HLH's 2 subsidiaries
Havyard Leirvik AS and Havyard Leirvik Eiendom AS. For more details see note 26 Discontinued Operations.
BKS Holding AS increased its ownership in Zenit Engineering AS, from 82% to 89%, during 2023.
Fossberg Kraft AS invested in a new project company, Haugsvær Kraft AS in 2023. The company will be sold to customer when project is completed. In 2023 the
project company Kvævebekken 2 AS was sold to the customer.
EQVA ASA transferred its 50% ownership in BKS Holding AS to Handeland Industri AS - now 100% owner. The transaction impacted the equity of HG Group AS
as well (parent company of Handeland Industri AS). The transaction was carried out as an asset contribution.
Havyard Eiendom Holding AS changed name to EQVA Eiendom Holding AS in 2023.
The accounting for associates has been according to the equity method.
Zenit Eigedom AS 100 % Sunde i Kvinnherrad Real estate NOK 30 -158Zenit Engineering AS 89 % Sunde i Kvinnherrad Products, solutions & renewables NOK 300 4 312Haugsvær Kraft AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 30 -58Skjeggfoss Kraftverk AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 30 -291BKS VVS AS 67 % Straume i Øygarden Products, solutions & renewables NOK 100 6 707Marine Support AS 70 % Storebø i Austevoll Products, solutions & renewables NOK 300 11 708
Investments in associates as of 31/12/2023 Ownership share/ Business office Currency Share of result Voting share(1,000)Havila Charisma IS 50 % Fosnavåg NOK -3 061EW Nord, Estland 47 % Tallinn EUR N/AInvestment in associates - balance sheet amount (NOK 1,000)Value of investment 1/1/2023 25 544Share of profit/(loss) -3 061Investments 0Additions through aquistiion 0Other adjustments -1 165Carrying value of investment 31/12/2023 21 318Aggregate financial information of associates according to owner share Operating revenue 52 434Profit/(loss) -6 121Total Comprehensive Income -6 121Total assets 144 653Equity 38 938Liabilities 105 715
60ANNUAL REPORT 2023
NOTES
2022EQVA ASA has the following owner-Ownership Business office Segment Currency Share Total ship in subsidiaries as of 31/12/2022share/capital equity voting share(1,000)(NOK 1,000)Havyard Ship Technology AS 100 % Leirvik i Sogn Other NOK 60 102 6 820Havyard Ship Invest AS 100 % Fosnavåg Other NOK 150 000 -1 822Havyard Leirvik Holding AS 100 % Fosnavåg Other NOK 2 539 2 459Havyard Leirvik AS 100 % Leirvik i Sogn Maritime Services NOK 2 509 30 230Norwegian Marine Systems AS 100 % Fosnavåg Other NOK 226 3 727Mjølstadneset Eiendom AS 100 % Fosnavåg Other NOK 143 10 512BKS Industri AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 72 29 059BKS Power & Automation AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 30 203HG Group AS 100 % Valen i Kvinnherad Other NOK 684 176 702Handeland Industri AS 100 % Valen i Kvinnherad Other NOK 375 12 931BKS Holding AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 30 5 211Fossberg Kraft AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 1 002 24 490Fossberg Kraft Produksjon AS 100 % Valen i Kvinnherad Other NOK 1 002 -18 993Havyard Eiendom Holding AS 100 % Sunde i Kvinnherrad Maritime Services NOK 50 50BKS Eiendom AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 150 3 004Havyard Leirvik Eiendom AS 100 % Leirvik i Sogn Maritime Services NOK 1 311 9 326Zenit Eiendom AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 30 30Zenit Engineering AS 82 % Sunde i Kvinnherrad Products, solutions & renewables NOK 300 5 175Kvævebekken 2 AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 80 -242Skjeggfoss Kraftverk AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 30 -120BKS VVS AS 67 % Straume i Øygarden Products, solutions & renewables NOK 100 3 871Marine Support AS 70 % Storebø i Austevoll Products, solutions & renewables NOK 300 10 069
61
ANNUAL REPORT 2023
NOTES
Investments in associates as of 31/12/2022 Ownership share/ Business office Currency Share of result Voting share(1,000)Havila Charisma IS 50 % Fosnavåg NOK -6 305EW Nord, Estland 47 % Tallinn EUR N/AInvestment in associates - balance sheet amount (NOK 1,000)Value of investment 1/1/2022 29 792Share of profit/(loss) -6 305Investments 0Additions through aquistiion 2 007Other adjustments 50Carrying value of investment 31/12/2022 25 544Aggregate financial information of associates according to owner share Operating revenue 50 061Profit/(loss) -12 610Total Comprehensive Income -12 610Total assets 162 860Equity 45 060Liabilities 117 800
The accounting for associates has been according to the equity method.
In June 2022 Havyard Group ASA, later changed name to EQVA ASA, aquried Fossberg Kraft and BKS. The settlement of 285 MNOK was based on a
combination of share issues, sellers credit and cash repayment. See note 13 for information regarding the share issue. See also note 10.
The parent company changed name from Havyard Group ASA to EQVA ASA in November 2022.
Havyard Eiendom Holding AS was established during the autum 2022. The company is the parent company of BKS Eiendom AS, Zenit Eiendom AS og Havyard
Leirvik Eiend om AS (all companies owned 100%). The establishment of the internal property group was based on demerger/sales transactions from respectively
Havyard Leirvik AS (HLE), Zenit Engeneering AS og BKS Holding AS. After the transactions HLE, Zenit and BKS carry out only operational core activities.
The ownership in HAV Group ASA was reduced from 33.3% to 4.7% in June 2022 by distributing dividend shares (10,000,000 shares) to the owners of Havyard
Group AS (now EQVA ASA). The distribution is recognized at fair value in accordance with IFRIC 17. EQVA has 1.5 million shares left in HAV group ASA after
dividend and ownership is 4.4 %.
EQVA had a 50% ownership in HPR Spzoo. The company suffered from missing orders and declining liquidities during the autum 2022. In December 2022 the
company was filed for bankruptcy, the fileing included both the Norwegian branch and the Polish registerd company. EQVAs accounted losse where limited.
62ANNUAL REPORT 2023
The companies were aquired for 215 MNOK, where 175 MNOK was
settled in shares in EQVA (issue of 47 206 166 new shares), 15 MNOK
was was settled in cash and 25 MNOK as seller credit. The number of
sharer increased from 24 781 150 to 71 987 316.
The companies were aquired as a part of EQVA`s strategy to develop
towards an integrated supplier of products and services to both
maritime sector and land-based industries.
Goodwill is related to the aquired companies documented ability to
deliver growth combined with positive financial results.
10. BUSINESS COMBINATIONS AND OTHER CHANGES IN
THE GROUP
2023
There has been no changes in the group in 2023, besides the divestment
of Havyard Lerivik AS, Havyard Leirvik Holding AS and Havyard Leirvik
Eiendom AS. Please see note 26 regarding discontinued operation..
2022
Aquisition of BKS company structure and Fossberg Kraft
On 29 June 2022, Havyard Group ASA (now EQVA ASA) acquired
100% of the shares and voting rights in HG Group AS and BKS Holding
AS including subsidiaries. The main business in the aquisition targets
is related to delivery of technical services to industrial clients (BKS) and
development of small hydropower plants (Fossberg Kraft). A Purchase
prize allocation (PPA) has been prepared in accordance with IFRS 3
where identifiable assets and liabilities are assessed at fair value at the
time of takeover. The difference between the group's acquisition cost
and the fair value of net assets is allocated to goodwill.
NOTES
PPA allocation (amounts in mNOK) Equity targets at time of aquisition -76,4PPA-adjustments 291,4Transaction value 215,0The assets and liabilities recognised as a result of the aquisition are as follows : Fair value (mNOK)Cash 8,6Trade receivables 101,5Inventories 6,2Other short-term receivables 13,0Land and buildings 102,6Plant and equipment 25,3Investments 11,4Deferred tax asset 0,9Intangible assets - trademarks 0,0Intangible assets - customer relationships 32,0Deferred tax liabilities -17,3Trade payables -54,1Bank debt -177,6Other long-term liabilities -3,0Other short term liabilities -81,1Net identifiable assets acquired -31,6Minority interests -1,6Goodwill 248,3Net assets acquired 215,0
63
ANNUAL REPORT 2023
stPro-forma accounts 2022 Aquisition targets 1 half 2023 EQVA ASA 2023* Pro-forma accunts 2022**Operating income 670,2 670,2Materials and consumables 275,5 275,5Payroll expenses 273,3 273,3Other operating expenses 95,8 95,8EBITDA 0,0 25,6 25,6
*consolidated group accounts
**as if the transaction was done 01 January 2023 i.e. including full-year effect of aquired companies
Change in ownership in HAV Group ASA
The ownership in HAV Group ASA was reduced from 33,3 % per 1 January 2022 to 4,4% per 31 December 2022. This due to distribution of dividend
shares (10 000 000 shares) in June 2022, and sale of shares to the market (110 105 shares) during the Autumn 2022. Per 31 December 2022, EQVA
has 1 548 542 shares remaining in HAV Group ASA.
In the 2022 accounts, EQVA booked a profit (share of profit associates) at 7,1MNOK from the ownershipt position in HAV Group ASA.
The dividend of 10 000 000 shares in June 2022 led to a loss of 6,1 MNOK booked as financial expenses.
11. INTANGIBLE ASSETS
2023(NOK 1,000)Licenses, patents and R&D Customer contracts Goodwill TotalAcquisition cost as of 1/1 1 425 32 000 248 260 281 685Additions during the year 0 0 0 0Disposals during the year 0 0 0 0Acquisition cost as of 31/12 1 425 32 000 248 260 281 685Accumulated amortization as of 1/1 150 1 067 0 1 217Amortization for the year 225 2 665 0 2 890Disposals during the year 0 0 0 0Accumulated amortization as of 31/12 375 3 731 0 4 106Book value as of 31/12 1 050 28 269 248 260 277 579Depreciation rate 5-7 years 15 years* Impairment testing Depreciation plan Linear
*Depreciation rate for customer relationships is set based on the aquired companies` history of long-term relationships with key customers.
NOTES
64ANNUAL REPORT 2023
NOTES
2022(NOK 1,000)Licenses, patents and R&D Customer contracts Goodwill TotalAcquisition cost as of 1/1 0 0 0 0Additions during the year 1 425 32 000 248 260 281 685Disposals during the year 0 0 0Acquisition cost as of 31/12 1 425 32 000 248 260 281 685Accumulated amortization as of 1/1 0 0 0 0Amortization for the year 150 1 067 0 1 217Disposals during the year 0 0 0Accumulated amortization as of 31/12 150 1 067 0 1 217Book value as of 31/12 1 275 30 933 248 260 280 468Depreciation rate 5-7 years 15 years* Impairment testing Depreciation plan Linear
*Depreciation rate for customer relationships is set based on the aquired companies` history of long-term relationships with key customers.
2023Allocation of goodwill 2023 2022Products, solutions & renewables 248 260 248 260Total goodwill 248 260 248 260
Goodwill
Goodwill is monitored as tested for impairment annually or
more frequently if events or changes in circumstances indicate
that the value may be impaired, goodwill is tested at the level
of operating segments. The entire goodwill relates to the
aquisition of BKS and Fossberg Kraft in late June 2022.
Cash flow assumptions
The impairment testing of assets is by nature highly judgmental
as it includes estimates such as future market development,
cash flows, determination of Segments and WACC, and
other assumptions that may change over time. In particular,
future cash flows are uncertain as they are impacted by
developments beyond our control. Weather conditions and
regulatory developments are two examples that may impact
our power plant development projects. Below is an overview of
the key assumptions and judgements applied for impairment
testing as of 31 December 2023.
The Weighted Average Cost of Capital (WACC) has been
calculated based on a risk-free rate which mirrors the current
yield on Norwegian 10-year government bonds, pursuant to
established valuation practices. The cost of equity has been
determined utilizing the Capital Asset Pricing Model (CAPM),
where an equity beta of 3.5 was applied, derived from an asset
beta of 0.6, assimilating a debt-to-equity ratio in alignment with
IFRS 13 "Fair Value Measurement".
Risk Adjustments: The asset beta's reflection of the
company's operational risks, inclusive of EBITDA margins
and revenue volatility, has been benchmarked against
comparable companies within the sector, a prudent asset
beta has been deemed appropriate, given the lower risk
profile assumed for BKS and Fossberg’s combined operations.
A market risk premium of 5% is incorporated to represent
the additional return investors require over risk-free securities,
supported by historical trends and financial institution
benchmarking. A small firm premium of 4.5% has also been
applied to account for the elevated risk associated with
liquidity and market access for smaller enterprises.
Given the assumtions and inputs above we consider the
calculated WACC (10,4%) to be conservative and custom-
tailored to the company’s strategic long-term financing needs,
incorporating comprehensive risk adjustments and market
considerations.The impairment test has also been tested for
sensitivities by changing key parameters with 1%, without any
impairment indicators identified.
65
ANNUAL REPORT 2023
NOTES
12. PROPERTY, PLANT AND EQUIPMENT
Other operating equipment mainly relates to office equipment.
Depreciation
The Group has identified three classes of property, plant and equipment; land and buildings, machinery and operating
equipment and are depreciated by the linear method over expected useful life.
2023(NOK 1,000) Land and buildings Machinery Operating equipment TotalAcquisition cost as of 1/1 358 981 53 595 68 980 481 557Adjustments 2022 4 186 5 691 0 9 877Additions during the year 72 5 540 0 5 613Disposals during the year 3 249 1 530 0 4 779Acquisition cost as of 31/12 359 991 63 296 68 980 492 267Accumulated depreciation as of 1/1 250 818 48 978 52 831 352 627Depreciation for the year 7 184 4 640 397 12 221Impairment 0 0 0 0Disposals during the year 0 193 0 193Accumulated depreciation as of 31/12 258 002 53 811 53 228 365 041Discontinued operation 9 121 3 720 1 144 13 985Depreciation for discontinued operation 0 1 401 0 1 401Book value as of 31/12 92 868 4 363 14 609 111 840Useful life 10-40 years 3-10 years 3-10 years 2022(NOK 1,000) Land and buildings Machinery Operating equipment TotalAcquisition cost as of 1/1 258 555 50 251 53 630 362 436Additions from aquisition 106 435 6 116 15 368 127 919Additions during the year 144 2 218 842 3 204Disposals during the year 6 152 4 990 861 12 002Acquisition cost as of 31/12 358 981 53 595 68 980 481 557Accumulated depreciation as of 1/1 248 608 45 758 51 953 346 320Depreciation for the year 2 210 3 220 877 6 307Accumulated depreciation as of 31/12 250 818 48 978 52 831 352 627Book value as of 31/12 108 164 4 617 16 149 128 927Useful life 10-40 years3-10 years 3-10 years
66ANNUAL REPORT 2023
13. LEASES
Amounts recognised in the balance sheet.
NOTES
The balance sheet shows the following amounts relating to leases:(NOK 1,000) 2023 2022Right of use assetsProperty 2 410 1 021Equipment 6 209 7 827Cars 3 657 2 086Sum 12 276 10 933Additions, right-of-use assets in the period 1 342 12 937Disposals of right-of-use assets in the period 0 0Disposals non-discounted liabilities in the period 0 0Amounts recognised in the statement of profit or loss.The statement of profit or loss shows the following amounts relating to leases: 2023 2022Depreciation charge of right-of-use assetsProperties 221 310Equipment 666 866Cars 1 390 1 160Total 2 276 2 335Interest expense 831 229Expenses relating to short-term leases*14 270 6 799*Main part of short-term leases is rent of housing for project personnel. Expenses relating to leases of low-value 0 0The total cash outflow for leases in 2023 was MNOK 12,455 (2022: MNOK 8,884) which includes short/insignificantlease arrangements.2023 2022Right of use assets - development 2023Right of use assets - 01.01* 10 933 332Corrections opening balance 2 276 0Additions during the year 1 342 12 937Depreciation 2 276 2 335Right of use assets - 31.12 12 276 10 933
67
ANNUAL REPORT 2023
NOTES
14. REVENUE FROM CONTRACTS WITH CUSTOMERS
Changes in the delivery time of the projects can have a significant impact on the measurement of contract assets and contractual
liabilities.
The amount accounted as contractual liabilities on Opening balance (IB) is recognized over the remaining of the contract period.
The revenue profile can vary significantly from one year to another by changes in the number of projects under construction and
the average degree of completion of the projects.
NOTE 14.1
NOTE 14.2
Contract assets 2023 2022Opening balance 51 537 0Payments received on assets from previous balance sheet date 45 179 0Assets from contracts entered into current year 66 122 51 537Closing balance 72 480 51 537Contract liabilities 2023 2022Opening balance -861 -35 558Revenues booked on liabilities from previous balance sheet date 861 35 558Liabilities from contracts entered into current year 0 861Closing balance 0 -861
(NOK 1,000)
See note 4
2023Disaggregation of revenue Products, solutions Real Estate Other / Elimination Eqva& renewablesService and maintenence 659 340 0 0 659 340Total revenue from contract with customers 659 340 0 0 659 340 See note 4 (NOK 1,000)NOTE 14.12022Disaggregation of revenue Products, solutions Other / Elimination EQVA& renewablesService and maintenence 200 236 4 649 204 884Construction of power plants 16 813 0 16 813Total revenue from contract with customers 217 049 4 649 221 698
68ANNUAL REPORT 2023
NOTES
NOTE 14.3
Transaction price allocated to fully or partly unsatisfied performance obligations2023 2022Transaction price allocated to remaining performance 57 439 41 573Expected delivery of remaining performance obligationsWithin one year 57 439 41 573Between one and two years 0 0
NOTE 14.4
No revenue was recorded in 2023 on previously completed contracts
(NOK 1,000) 2023 2022ProvisionsProvisions from previous period 0 0Reduced deposit 0 0New provisions 0 0Total 0 0
15. LOSSES TO COMPLETION
The provision is presented as part of other current liabilities in the balance sheet. The profit and loss statement the expense is allocated
between the line items materials and consumables, payroll expenses and other operating expenses.
69
ANNUAL REPORT 2023
16. FINANCIAL RISK MANAGEMENT
Below the financial instruments of the Group are presented according to category:
2023Fair value through profit or loss Amortized cost TotalAssets as per balance sheetInvestments in shares 0 0 0Loans to associates 0 4 988 4 988Trade and other current receivables 0 121 589 121 589Non current receivables 0 3 809 3 809Cash and cash equivalents 0 35 984 35 984Total 0 166 370 166 370
Liabilities at fair value through Amortized cost Totalthe profit or lossLiabilities as per balance sheetAccounts payables 0 55 666 55 666Other long-term liabilities 0 41 770 41 770Lease liabilities 0 12 250 12 250Other current liabilities 0 33 420 33 420Liabilities to financial institutions 0 203 715 203 715 Total 0 346 821 346 821
NOTES
For shares considered at fair value, please refer to note 19.
Financial instruments valued at amortized cost is considered to have market value which not differ significantly from booked value.
Difference between non-discounted cash-flows and amortized costs are considered to insignificant.
2022Fair value through profit or loss Amortized cost TotalAssets as per balance sheetInvestments in shares 16 163 0 16 163Loans to associates 0 4 840 4 840Trade and other current receivables 0 116 507 116 507Non current receivables 0 2 648 2 648Cash and cash equivalents 0 61 117 61 117Total 16 163 185 113 201 275
Liabilities at fair value through Amortized cost Totalthe profit or lossLiabilities as per balance sheetAccounts payables 0 56 147 56 147Other long-term liabilities 0 41 4 74 41 4 74Lease liabilities 0 11 243 11 243Other current liabilities 0 76 255 76 255Liabilities to financial institutions 0 175 366 175 366 Total 0 360 485 360 485
70ANNUAL REPORT 2023
NOTES
Assessment of fair value
The different levels have been defined as follows:
Level 1: Fair value is measured by using quoted prices in active
markets for identical financial instruments. No adjustments are
made related to these prices.
Level 2: The fair value of financial instruments that are not
traded on an active market is determined using valuation meth-
ods. These valuation methods maximise the use of observable
data where they are available, and rely as little as possible on
the Group’s own estimates. Classification at level 2 requires
that all significant data required to determine fair value are
observable data.
Level 3: Fair value is measured using significant data that are
not based on observable market data.
Financial Risk
The Group’s activities expose it to financial risks such as, mar-
ket risks, credit/counterpart risk and liquidity risk.
The Board of Directors is responsible for setting the objec-
tives and underlying principles of financial risk management
for the Group. The Board of Directors also establishes detailed
policies such as authority levels, oversight responsibilities, risk
identification and measurement, exposure limits and hedging
strategies (if relevant).
Market Risk
Market risk is the risk that fluctuations in market prices,
e.g. exchange rates, the price of such raw materials as steel,
and interest rates, will affect future cash flows or the value
of financial instruments. Market risk management aims to
ensure that risk exposure stays within the defined limits, while
optimising the risk-adjusted return. Attempts should be made
to secure major purchases in connection with projects as soon
as possible after the final clarification of the project.
Currency risk
The Group’s revenue and costs are denominated primarily in
Norwegian Krone(“NOK”) which is the functional currency
of all entities within the Group. Currency risk arises through
ordinary business when transactions occur in a currency other
than the functional currency of the Group. The Group is
mainly exposed to Euro (EUR) - but currency risk is considered
to be limited in EQVA`s current operations. The Group has a
currency hedging strategy where financial instruments (mainly
forward contracts) are used to minize the currency risks.
71
ANNUAL REPORT 2023
Credit/Counterparty risk
Credit risk refers to the ability and willingness of counterparts to pay for services rendered and to stand by their future contractual
commitments with the Group. The Group has implemented thorough procedures to limit the exposure to unreliable counterparts
and the Group avoids undue concentration of credit and counterpart exposure. Prior to fixing any business with new customers or
medium to longer term business with existing customers, commercial departments have to get approval from the Group’s credit
risk team. The credit assessments are based on information from external credit rating agencies, public information, the Group's
previous experience with the counterpart and internal analysis. Country and political risk also forms a part of the assessment. The
Group actively seeks to diversify its exposure to particular industries and/or jurisdictions.
The age analysis of trade receivables is as follows:
Impairment of trade receivables are mainly related to a few issues were clients have experienced financial difficulties.
The impairment amount is calculated in each case based on best estimate of amount to be received.
Liquidity risk
Liquidity risk is the risk that the group will be unable to fulfil its financial obligations as they fall due. The Group monitors its liquidity
risk by maintaining a level of cash and bank balances deemed adequate by management to finance the Group’s operations and
mitigate the effects of fluctuations in cash flows.
Management monitors rolling forecasts of the Group’s liquidity reserve and cash and bank balances on the basis of expected cash
flow. Close follow of the cash flow development is also the basis for the continued operation considerations. Reference can be
made to note 22 for details on cash, note 17 for interest bearing debt and note 13 leasing liabilities.
Liquidity risk can also be caused by customers not able to establish long-term financing for projects or that the Group is unable
to secure construction financing.
NOTES
NOK (1,000) 2023 2022Not past due 38 816 75 259Past due < 3 months 26 667 9 723Past due 3 to 6 months 34 009 2 395Past due over 6 months 9 300 7 338Impairment -9 300 -3 760Trade receivables 99 493 90 955Contract assets customer contracts 72 480 51 537Total credit/counterparty risk to customers 171 973 142 492
72ANNUAL REPORT 2023
NOTES
Liabilities in balance sheet
2023 Current Long Term TotalNOK (1,000) 0-3 3-6 6-12 1-2 years 2-5 years > 5 yearsmonthsmonthsmonthsNon DerivativesAccounts payables 39 665 16 001 55 666Lease 17 0 3 363 476 1 637 6 756 12 250Other long-term liabilities 41 770 41 770Liabilities to financial institutions 78 423 125 292 203 715Total 39 682 16 001 81 786 42 246 126 929 6 756 313 400DerivativesForward contract foreign exchange 0 0 0 0Total 39 682 16 001 81 786 42 246 126 929 6 756 313 400
Capital Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and to maintain
an optimal capital structure so as to maximise shareholder value. In order to maintain or achieve an optimal capital structure, the
Group may return capital to shareholders or obtain borrowings.
The group`s main target for managing capital is return on equity (ROE).
Interest rate risk
The Group are exposed to changes in interest rates, as the liabilities have floating rates. The Group have not entered into interest
rate hedging instrument. Reference is made to Note 17 for more information regarding interest bearing debt.
2022 Current Long Term TotalNOK (1,000) 0-3 3-6 6-12 1-2 years 2-5 years > 5 yearsmonthsmonthsmonthsNon DerivativesAccounts payables 56 147 0 0 56 147Lease 0 1 619 9 624 0 11 243Other long-term liabilities 3 416 38 057 0 41 4 74Liabilities to financial institutions 7 523 10 260 26 977 56 261 96 608 0 197 629Total 63 670 10 260 28 74 2 60 165 149 888 0 312 725DerivativesForward contract foreign exchange 0 0 0 0Total 63 670 10 260 28 74 2 60 165 149 888 0 312 725
73
ANNUAL REPORT 2023
NOTES
17. INTEREST BEARING DEBT
The Liabilities to financial institutions of total 199 MNOK include, DNB loan to BKS and EQVA Eiendom, construction loans from
Sparebank 1 SR-Bank to Fossberg Kraft, Pareto bank loan to EQVA ASA, and drawn revolving credit facility in Fossberg Kraft and
BKS.
The loans from DNB have a maturity on 3 years and the loan from Pareto has a maturiy of 2 years. Construction loans from
Sparebank 1 SR-Bank has a maturity of 1-2 years. All the loans have floating interest rates.
As of 31 December 2023, EQVA ASA has received a waiver for the debt covenants for the Pareto loan. Other debt was in
compliance with its existing debt covenants.
Other long-term liabilities include among others a sellers credit from the aquisition of HG Group and BKS (25MNOK) and a loan
from Havila Holding (13MNOK).
(NOK 1,000)Interest bearing long-term debt 2023 2022Lease liabilities 8 870 9 624Liabilities to financial institutions 125 293 152 868Other long-term liabilities 41 770 41 4 74Sum 175 932 203 967Interest bearing short-term debt 2023 2022Liabilities to financial institutions 78 423 22 498Lease liabilities 3 380 1 619Sum 81 803 24 116Debt secured by mortgage 2023 2022Long-term debt to financial institutions 125 293 152 868Short-term debt to financial institutions 78 423 22 498Sum 203 715 175 366
74ANNUAL REPORT 2023
Leasing liabilities
For information about group's leasing, see note 13.
Book value of pledged asset(NOK 1,000) 2023 2022Buildings 92 868 108 164Machinery, operating equipment 18 972 20 766Contract assets customer contracts 72 480 51 537Inventory 5 780 13 681Accounts receivables 99 493 90 955Bank deposits 23 071 47 519Sum book value of pledged assets 312 664 332 622
2023Loans Changes in liabilities(NOK 1,000) Start of period Borrowing Additions by Installment Other End of periodaquisitionchangesLiabilities to financial institutions 175 366 81 220 0 57 453 4 582 203 715Sellers credit to shareholders 25 000 0 0 25 000Other long-term liabilities 16 474 2 718 0 212 -2 212 16 769Lease liabilities 11 2433 2810 2 276 0 12 250Total interest-bearing debt 228 082 87 219 0 59 941 2 370 257 735
2022Loans Changes in liabilities(NOK 1,000) Start of period Borrowing Additions by Installment Other End of periodaquisitionchangesLiabilities to financial institutions 4 783 510 177 573 7 500 0 175 366Sellers credit to shareholders 0 0 0 25 000 25 000Other long-term liabilities 31 933 15 460 0 16 474Lease liabilities 357 9 492 3 023 1 629 0 11 243Total interest-bearing debt 37 073 10 002 180 596 24 589 25 000 228 083
As of 31 December 2022, the Group was in compliance with all its existing debt covenants.
NOTES
75
ANNUAL REPORT 2023
NOTES
18. OTHER CURRENT LIABILITIES
19. NON
-CURRENT FINANCIAL INVESTMENTS
The Group has no investments in financial assets as per 31.12.23 (NOK 16.2 million as of December 31. 2022). The investments are
classified as noncurrent. The investments are recognized at fair value with changes in value in the income statement.
All investments are unquoted equity shares and are classified as level 3 investments.
Other current liabilities consists of the following: (NOK 1,000) 2023 2022Employee-related liabilities 26 906 38 133Warranty provisions 0 7 879Accrud interest expense 1 814 2 323Other current liabilities 4 700 27 920Total other current liabilities 33 420 76 255
2023(NOK 1,000)Company Ownership share/Business Office Carrying voting shareamountNA 0Other non-current financial investments** 0Carrying amount as of 31/12/23 0There are no quoted or unquoted equity shares investments.2022(NOK 1,000)Company Ownership share/Business Office Carrying voting shareamountHAV Group ASA* 4.4% Fosnavåg 13 163Other non-current financial investments** 3 000Carrying amount as of 31/12/22 16 163
76ANNUAL REPORT 2023
NOTES
Changes in carrying amount from 31/12/22 to 31/12/23:
*Due to reduction in ownership in HAV Group ASA, the investment is reclasified from "Investment in associates". Market value
per 31.12.2022.
Valuation (Vest North Group AS) is based on value adjusted equity in the ship owning companies. External valuations are used to
estimate value of ships. These are subject to general factors in the world economy and speicifically in the shipping industry.
20. OTHER CURRENT AND NON
-CURRENT RECEIVABLES
(NOK 1,000)Other non-current receivables 2023 2022Prepaid leasing obligations 3 809 2 648Sum other non-current receivables 3 809 2 648Other current receivables 2023 2022Prepayments suppliers 3 902 7 494Accrued income 0 6 447Employee-related items 85 1 426Receivables VAT and government grants 0 1 550Other short-term receivables 18 108 8 634Sum other current receivables 22 096 25 552
(NOK 1,000) 2023 2022Level 1 investments 01/01 13 163 0Investment 0 0Reclassified* 0 13 163Impairment 0 0Sale of investment -13 163 0Adjustment 0 0Level 1 investments 31/12 0 13 163(NOK 1,000) 2023 2022Level 3 investments 01/01 3 000 3 000Investment 0 0Impairment 0 0Sale of investment -3 000 0Adjustment 0 0Level 3 investments 31/12 0 3 000
77
ANNUAL REPORT 2023
NOTES
21. INVENTORY
22. CASH AND CASH EQUIVALENTS
23. GOVERNMENT GRANTS
Government grant have been received for one project. The grant is booked as reduction of operating costs in the P&L.
There are no unfulfilled conditions or contingencies attached to this grant.
(NOK 1,000) 2023 2022Raw materials (at cost) 5 780 13 681Total Inventories 5 780 13 681Impairment for obsoletness 0 0
Inventory is measured at the lower of average cost and net realisable value, and consists of raw
materials.
Cash and cash equivalents consist of: NOK (1,000) 2023 2022Cash at banks - unrestricted 23 071 47 512Cash at banks - restricted 12 913 13 605Total 35 984 61 117Restricted cash consists of:Security furnished to customer for payment in advance 0 0Tax withholding accounts 10 197 10 976Other 2 716 2 629
At 31 December 2023 the Group had MNOK 0 (2022: NOK mill 0) in undrawn committed borrowing facilities.
NOK (1,000) 2023 2022Received during the year 2 745 824Released to the income statement 2 738 824Of this - booked as reduction of other operating expenses 2 738 824Of this - booked as reduction of capitalized R&D 0 0Unrecognized income 0 0
78ANNUAL REPORT 2023
NOTES
24. SHARE CAPITAL
Treasury shares
EQVA ASA has 599 971 treasury shares (0,8 % of share capital) as of 31/12/2023.
The board proposes NOK 0 in dividend for the general meeting.
Ordinary shares issued and fully paid2023 2022Number of ordinary shares 71 987 316 71 987 316Par value (NOK) 0.05 0.05Share capital (NOK) 3 599 366 3 599 366
All shares have equal rights.
Shareholders as of 31/12/2023 Controlled by Number of shares OwnershipNintor AS 16 938 645 23,5 %Havila Holding AS Vegard Sævik (Board) 10 000 000 13,9 %Neve Eiendom AS Even Matre Ellingsen (DB) 8 168 462 11,3 %ROS Holding AS 5 660 027 7,9 %Eikestø Eiendom AS Rune Skarveland (Board) 4 960 847 6,9 %Fureneset Eiendom AS 4 960 847 6,9 %Eikestø AS Rune Skarveland (Board) 2 999 511 4,2 %Fureneset Invest AS 2 999 511 4,2 %Emini Invest AS 1 290 000 1,8 %HSR Invest AS 1 290 000 1,8 %Innidimann Invest AS Vegard Sævik (Board) 1 290 000 1,8 %MP Pensjon PK 1 167 768 1,6 %Other shareholders (<1 %) 10 261 698 14,3 %Number of shares 71 987 316 100 %
Shareholders as of 31/12/2022 Controlled by Number of shares OwnershipNintor AS 16 938 645 23,5 %Havila Holding AS Vegard Sævik (Board) 10 000 000 13,9 %ROS Holding AS 5 660 027 7,9 %Neve Eiendom AS Even Matre Ellingsen (DB) 4 993 951 6,9 %Eikestø Eiendom AS Rune Skarveland (Board) 4 960 847 6,9 %Fureneset Eiendom AS 4 960 847 6,9 %Eikestø AS Rune Skarveland (Board) 2 999 511 4,2 %Neve Holding AS Even Matre Ellingsen (DB) 2 999 511 4,2 %Fureneset Invest AS 2 999 511 4,2 %Emini Invest AS Vegard Sævik (Board) 1 290 000 1,8 %HSR Invest AS 1 290 000 1,8 %Innidimann Invest AS 1 290 000 1,8 %MP Pensjon PK 1 086 468 1,5 %Other shareholders (<1 %) 10 518 498 14,6 %Number of shares 71 987 816 100 %
79
ANNUAL REPORT 2023
NOTES
25. EARNINGS PER SHARE
The group has no financial options or convertible loans with a future dilution effect.
2022
Capital increase (2022)
The share capital was increased by NOK 2 360 308 to 3 599 366, by issuing 47 206 166 new shares, in June 2022. The increase was related
to the aquisition of BKS and Fossberg Kraft. After the increase the number of shares are 71 987 316, at NOK 0.05.
Treasury shares (2022)
EQVA ASA has 323 046 treasury shares (0.4 % of share capital) as of 31/12/2022.
Dividends and group contributions (2022)
The ownership in HAV Group ASA was reduced from 33.3% to 4.7% in June 2022 by distributing dividend shares (10,000,000 shares) to
the owners of Havyard Group AS (now EQVA ASA). The distribution is recognized at fair value in accordance with IFRIC 17. EQVA has 1.5
million shares left in HAV group ASA after dividend (ownership now is 4.4 %).
(NOK 1,000) 2023 2022Profit attributable to equity holders of parent -23 733 -21 410Weighted average number of shares outstanding 71 987 71 987Earnings per share (NOK) -0,33 -0,30Adjusted weighted average number of shares outstanding 71 987 71 987Diluted earnings per share (NOK) -0,33 -0,30Earnings from continued operationsEarnings per share (NOK) -0,33 -0,30Diluted earnings per share (NOK) -0,33 -0,30(NOK 1,000) 2023 2022Profit attributable to equity in continued operations -19 889 -28 958Weighted average number of shares outstanding 71 987 71 987Earnings per share (NOK) -0,28 -0,40.Adjusted weighted average number of shares outstanding 71 987 71 987Diluted earnings per share (NOK) -0,28 -0,40Earnings from continued operationsEarnings per share (NOK) -0,28 -0,40Diluted earnings per share (NOK) -0,28 -0,40
80ANNUAL REPORT 2023
NOTES
26 DISCONTINUED OPERATION
The shipyard Hayard Leirvik was sold to Tersan in November 2023. The transaction was based on a share sale, where the Group
sold all its shares (100%) in Havyard Leirvik Holding AS, where the subsidiaries Havyard Leirvik AS and Havyard Eiendom AS was
included. The transaction was settled by NOK 30m in cash. The Group has recognised a gain of NOK 13m on the sale of all shares
in Hayard Leirvik Holding AS.
Hayard Leirvik is a shipyard with long legacy and are in good hands going forward together with Tersan Shipyard, a highly reputable
company with a good standing in international shipping and maritime circles. Hayard Leirvik has its head office in Fosnavåg.
Financial information relating to the discontinued operation for the period from the date of incorporation to the date of disposal
is set out below.
Financial performance and cash flow information
The financial performance and cash flow information in 2023 presented are for the period Q1 2023 - Q3 2023.
(NOK 1,000) 2023 2022Revenues from contracts with customers 106 396 234 734 Other operating revenues 1 191 424 Operating income 107 588 235 158 Materials and consumables 66 523 150 460 Payroll expenses 38 716 54 503 Other operating expenses 15 822 17 688 Operating expenses 121 061 222 651 Operating profit/loss before depreciation and amortisation (EBITDA) -13 473 12 507 Depreciation 1 401 2 761 Operating profit/loss (EBIT) -14 875 9 746 Financial income 45 54 Financial expenses -91 -1 402 Share of profit/ loss of associate 13 008 0 Profit / loss before tax -1 913 8 397 Income tax expense 0 0 Profit from discontinued operations -1 913 8 397 Net cash flow from operating activities -936 -61 375 Net cash flow from investing activities -1 782 -2 458 Net cash flow from financing activities 0 -27 821 Net increase/decrease in cash genereated by the subsidiary -2 717 -91 654
81
ANNUAL REPORT 2023
27. CONTINGENCIES AND PROVISIONS
Legal disputes
Non
Tax
Non
Guarantees/warranties
Being a group in the shipbuilding industry, the Group from time to time faces warranty claims as part of its ordinary business. No
material warranty claim has as of the date of these financial statements been directed at any of the companies in the Group, nor
have any of the companies in the Group been notified of any such claims.
In addition to the above BKS Industri AS has an off balance sheet guarantee of NOKm 18,5.
2023GuaranteesProvisions 1/1/2023 7 879Used provision -3 571Adjustment due to divestment of Havyard Leirvik -4 308New provisions 0Provisions 31/12/2023 02022GuaranteesProvisions 1/1/2022 23 395Used provision -16 371New provisions 856Provisions 31/12/2022 7 879
Cashflow from sale of Havyard 2023Sale of subsidiary 36 487 Cash in sold subsidiary 8 707 Receivables to Pareto 12 582 Repayment of loan to sold subsidiary 5 967 Net cashflow from sale of subsidiary 9 231 Profit on the sale of Havyard LeirvikTotal disposal consideration 36 487 Carrying amount of net assets sold 23 479 Net cashflow from sale of subsidiary 13 008
82ANNUAL REPORT 2023
28. RELATED PARTY TRANSACTIONS
Transactions with related parties
The Group has various transactions with related parties. All the transactions have been carried out as part of the ordinary
operations and at arms` length principle.
The most significant transactions are as follows:
(NOK 1 000)
Handeland Gard AS Sales to related parties Purchases from related parties Accounts payables to related parties 2023 0 3 039 1712022 0 399 26Handeland Gard AS is controlled 100% by Board Member Rune Skarveland. The balance sheet includes the following receivables and payables resulting from transactions with associated companies:2023 2022Account receivables 0 0Account payables 171 2 862Net total (positive sign - net receivable) -171 -2 862
NOTES
83
ANNUAL REPORT 2023
NOTES
29. SUSTAINABILITY AND CLIMATE RISK
The climate risk consits of both physical risk and transition risk.
Physical risk can be the effect of extreme weather events,
and transition risk is risk associated with the transition
to a low-emission society. The physical risk of weather-
related damage (for example at Fossberg Kraft project
development), emphasizing the importance of accounting
for climate considerations, such as frost and flooding -
which can delay the construction of e.g. small power plants.
Like its competitors, Fossberg Kraft faces these environmental
challenges, which can impact the timely completion of
projects, despite careful planning and mitigation efforts.
This approach underlines the company's commitment
to resilient project design, while acknowledging the
unpredictable nature of climate impacts on development
timelines. Even so, we still consider the risk to be limited.
Transition risk can be political changes and regulations that
result in increased fees, fines and orders. In relation to BKS
and Fossberg Kraft, the transition risk is also considered to
be relatively low. However, political decisions such as tax on
aquaculture business may affect the Group's businesses.
Overall, the climate risk and its impact on future earnings is
considered to be relatively low.
EQVA has initiated a survey to identify status and measures in
relation to being able to run its business in line with sustainability
requirements. The Group seeks to be at the forefront of
future legal requirements for sustainability reporting. Of the
companies in the Group, this is particularly relevant for BKS,
which has already started the mapping process. This work will
continue in 2024.
Due to that a significant part of the Group's business is due to
projects which have a positive climate effect (electrifications/
hybrifications of vessels, energy optimizing projects, to process
industry and smelters), increased focus on the "green shift" is
considered to give significant business opportunities for the
Group going forward.
30. SUBSEQUENT EVENTS
On 12. March EQVA through its subsidiary Havyard Ship
Invest AS, entered into a sales-agreement with Havila Holding
AS to divest its 50 % stake in the PSV Havila Charisma. The
transaction was settled in NOK 62m in cash, where NOK 4m is
repayment of debt. There has been no other after the balance
sheet date events with significant impact on the financial
accounts as at 31 December 2023.
84ANNUAL REPORT 2023
NOTES
PARENT COMPANY
85
ANNUAL REPORT 2023
NOTES
86ANNUAL REPORT 2023
PROFIT OR LOSS STATEMENT PARENT COMPANY
PROFIT OR LOSS STATEMENT PARENT COMPANY
EQVA ASA
Note 2023 2022
Operating revenues and operating expenses
Revenues 9 9 617 350 5 663 510
Total revenue 9 617 350 5 663 510
Materials 8 517 12 291
Wages and salaries 3 11 502 325 10 569 249
Depreciation 6 47 744 186 020
Other operating expenses 3, 9 13 030 520 20 268 339
Total operating expenses 24 589 107 31 035 898
Operating profit -14 971 756 -25 372 388
Financial income and expenses
Income from subsidiaries 4 25 326 335 0
Other financial income 2 20 718 215 134 905 982
Other interest expenses 2 11 908 547 4 104 491
Other financial expenses 2 2 565 422 1 598 681
Net financial income and expenses 31 570 581 129 202 810
Profit before taxes 16 598 825 103 830 422
Taxes 14 -3 266 524 -6 490 059
Profit for the year 10 19 865 349 110 320 481
Allocations
Transferred to other equity 19 865 349 110 320 481
Transferred from other equity 0 0
Total allocations 10 19 865 349 110 320 481
87
ANNUAL REPORT 2023
BALANCE SHEET PARENT COMPANY
BALANCE SHEET PARENT COMPANY
EQVA ASA
Note 2023 2022
ASSETS
Non current assets
Deferred tax benefit 14 9 129 307 6 490 059
Total intangible assets 9 129 307 6 490 059
Fixed assets
Operating equipment, fixtures, fittings, tools, etc 6 379 166 257 531
Total tangible fixed assets 379 166 257 531
Financial fixed assets
Investments in subsidiaries 4 219 284 366 230 443 591
Loan to Group companies 9 139 523 357 170 394 340
Investments in shares 4, 5 0 4 494 470
Other long-term receivables 7 8 455 8 255
Total financial fixed assets 358 816 178 405 340 656
Total fixed assets 368 324 651 412 088 247
Current assets
Accounts receivable 9 13 470 0
Receivables from group companies 9 33 612 938 6 935 865
Other current receivables 2 14 387 069 4 921 608
Total receivables 48 013 477 11 857 473
Cash and bank deposits 8 2 643 936 3 168 482
Total current assets 50 657 413 15 025 955
Total assets 418 982 063 427 114 203
88ANNUAL REPORT 2023
BALANCE SHEET PARENT COMPANY
EQUITY AND LIABILITIES Note 2023 2022
Equity
Share capital 10, 11 3 599 366 3 599 366
Own shares 10, 11 -29 999 -16 152
Share premium 10 195 174 785 195 174 785
Total paid-in equity 198 744 153 198 757 999
Retained equity
Retained earnings 10 80 010 304 58 724 116
Total retained earnings 80 010 304 58 724 116
Total equity 10 278 754 455 257 482 116
Liabilities
Non current liabilities
Long-term liabilities to financial institutions 12 45 000 000 70 000 000
Sellers credit - owners 12 25 126 389 25 000 000
Other long-term liabilities 12 15 337 826 14 298 328
Total non current liabilities 85 464 215 109 298 328
Current liabilities
Short-term liabilities to financial institutions 12 20 000 000 20 000 000
Accounts payable 4 399 420 5 519 525
Payable tax 14 0 0
Public duties payable 1 000 228 1 102 823
Debt to group companies 9 26 761 532 29 625 098
Other current liabilities 2 2 602 212 4 086 312
Total current liabilities 54 763 392 60 333 758
Total liabilities 140 227 607 169 632 086
Total equity and liabilities 418 982 063 427 114 203
Valen, 21 March 2024
The Board of Directors and CEO
EQVA ASA
Even Matre Ellingsen
Chairman of the Board of Directors
Anne Soe Myrmel Bruun-Olsen
Board member
Vegard Sævik
Board member
Rune Skarveland
Board member
Ellen Merethe Hanetho
Board member
Erik Høyvik
CEO
Kari Markhus
Board member
employee representative
Tomasz Bartlomiej Wesierski
Board member
employee representative
89
ANNUAL REPORT 2023
STATEMENT OF CASHFLOW PARENT COMPANY
STATEMENT OF CASHFLOW PARENT COMPANY
EQVA ASA
Note 2023 2022
Cash flow from operations
Profit/(loss) before tax 16 598 825 103 830 422
Loss on receivables 0 2 386 690
Net Financial expenses -2 413 679 0
Depreciation 6 47 744 186 020
Accounting profit from sale of shares -34 611 897 0
Marketvalue adjustment dividend shares 0 -128 783 201
Changes in accounts receivables and accrued income -13 470 3 706 730
Changes in accounts payables -1 120 104 2 967 397
Changes in other current receivables/ liabilities -10 387 699 362 646
Net cash flow from operating activities -31 900 280 -15 343 298
Cash flow from investments
Investments in property, plant and equipment 6 -169 379 -284 322
Disposal of Havyard Leirvik and sale of shares in HAV 31 619 433 3 004 793
Sale of fixed assets 0 1 135 825
Investment in subsisiaries 0 -15 000 000
Interest income 0 5 022
Net cash flow from investing activities 31 450 054 -11 133 660
Cash flow from financing activities
Net decrease FoU grants 6 391 -6 554 442
Aquired own shares -1 178 069 -890 200
Loan from financial institutions 12 0 95 000 000
Installments to finacial institutions 12 -25 000 000 -5 000 000
Interest payments and fees -7 442 685 -3 941 358
Change intercompany balances 33 540 042 -72 534 142
Net cash flow from financing activities -74 321 6 079 858
Net change in cash and cash equivalents -524 546 -20 397 100
Cash and cash equivalents at start of the period 3 168 482 23 565 582
Cash and cash equivalents at end of the period 2 643 936 3 168 482
Of this restricted cash 609 371 608 402
90ANNUAL REPORT 2023
NOTES PARENT COMPANY
91
ANNUAL REPORT 2023
NOTES PARENT COMPANY
NOTE 1 ACCOUNTING PRINCIPLES
Accounting Principles
The financial statements are set up in accordance with
the Norwegian Accounting Act. They are prepared using
Norwegian accounting standards and generally accepted
accounting principles.
Management has used estimates and assumptions that affect
the income statement and the valuation of assets and liabilities,
as well as contingent assets and liabilities, at the balance
sheet date during the preparation of financial statements in
accordance with generally accepted accounting principles.
Fixed assets are comprised of assets intended for long-term
hold and use. Fixed assets are stated at cost. Fixed assets are
capitalized and depreciated over the asset's useful life.
Tangible fixed assets are written down to the recoverable
amount when impairment is not expected to be temporary.
The recoverable amount is the higher of an asset’s net selling
price and its value in use. An asset’s value in use is the present
value of the estimated future cash flows from the asset. If the
reasons for impairment no longer exist, the impairment loss
is reversed.
Current assets and liabilities consist of items that fall due for
payment within one year of acquisition, as well as items related
to the business cycle. Current assets are valued at the lower
of cost and net realizable value. Current liabilities are stated at
nominal value at the time of acquisition.
Monetary items in foreign currency are translated using the
exchange rates at the balance sheet date. Transactions in
foreign currency are translated at the rate applicable on the
transaction date.
Trade receivables and other receivables are recorded at
nominal value less a provision for doubtful accounts. The
provision is made based on an individual assessment of each
receivable.
Subsidiaries and associated companies are assessed according
to the cost method in the company accounts. The investment
is valued at the acquisition cost of the shares unless impairment
has been necessary. Write-downs have been made at fair value
when a fall in value is due to reasons that cannot be assumed
temporary, and it must be considered necessary according
to good accounting practice. Impairment losses are reversed
when the basis for impairment is no longer present.
NOTES TO THE FINANCIAL STATEMENTS 2023
PARENT COMPANY
Dividends, group contributions and other distributions
from subsidiaries are recognized in the same year as they
are recognized in the financial statement of the provider. If
dividends/group contribution exceed withheld profits after the
acquisition date, the excess amount represents repayment of
invested capital, and the distribution will be deducted from the
recorded value of the acquisition in the balance sheet for the
parent company.
The tax expense in the income statement is comprised of both
the period’s payable tax and changes in deferred tax. Deferred
tax is calculated at a rate of 22 % based on the temporary
differences that exist between accounting and tax values, and
tax losses carried forward at the year-end. Tax increasing and
tax-reducing temporary differences that are reversed or can be
reversed in the same period are offset. Net deferred tax assets
are recognized to the extent that it is probable that the amount
can be utilized against future taxable income.
Accounting principles are further discussed in the
accompanying notes to individual financial statement items.
92ANNUAL REPORT 2023
NOTES PARENT COMPANY
Income statement
The item "Other financial income" consists of: 2023 2022
Interest from Group companies 11 432 571 3 117 887
Other interest income 3 5 002
Agio 80 20
Market value adj. for dividend shares in HAV Group ASA 0 128 783 201
Profit share sale - HAV Group ASA 3 905 111 2 636 338
Value adj. HAV shares 5 380 451 363 534
Total 20 718 215 134 905 982
The item "Other financial costs" consists of: 2023 2022
Other interest expences 11 908 547 424 390
Disagio 6 943 2 532
Establishment fee and interes Pareto loan 395 833 3 680 102
Other financial costs 2 162 646 1 596 149
Total 14 473 970 5 703 172
Balance sheet
The item "Other current receivables" consists of: 2023 2022
Prepaid expenses 845 944 1 451 318
Other short term receivables 13 541 125 3 470 290
Total 14 387 069 4 921 608
The item "Other current liabilities" consists of: 2023 2022
Unpaid wages and vacation pay 774 515 1 968 887
Accrued interests 1 742 425 1 742 425
Other short-term liabilities 85 272 375 000
Total 2 602 212 4 086 312
NOTE 2 MERGED ITEMS
Payroll expenses 2023 2022
Wages 5 824 397 6 462 177
Social security tax 1 592 063 1 419 218
Pension costs 450 092 340 787
Other payroll-related costs 3 635 773 2 347 069
Total 11 502 325 10 569 249
FTEs at year end 4,5 4,5
NOTE 3 PAYROLL EXPENSES, NUMBER OF EMPLOYEES, REMUNERATIONS, ETC.
93
ANNUAL REPORT 2023
NOTES PARENT COMPANY
* Eirik Sævareid was replaced by Ask Haukaas in September 2023.
No loans or guarantees have been issued to the CEO,
the Chairman of the Board or other related parties. As of
31.12.2023.
Incentive programs established in EQVA
EQVA has established a incentiv arrangement (bonus) which
applies to leaders and key personnel in the Group. The
payments depends on, among others, group performance
(e.g reported EBITDA measured against budgeted EBITDA).
The payments are expensed as salaries. There has been no
payments in 2023.
The Group has also established a new share purchase program
where all employees can participate. Employees can buy
shares for up to NOK 20,000 with a discount of 20 %. The
share discount are expensed as salaries. The share purchase
program is conducted annually.
Auditor remuneration is distributed as follows: 2023 2022
Statutory audit 2 832 600 1 878 955
Tax consulting 0 0
Other services 563 876 1 665 325
Total (net of VAT) 3 396 476 3 544 280
Erik Høyvik,
CEO
Eirik Sævareid,
CFO
Ask Haukaas,
CFO*
Management remunerations 2023 2022 2023 2022 2023 2022
Wages 2 169 2183 1 211 750 547 0
Pension 101 95 78 52 52 0
Other benefits 151 146 144 6 10 0
Total 2 422 2 424 1 433 809 609 0
Board
Management remunerations 2023 2022
Wages 3 390 2 067
Pension 0 0
Other benefits 0 0
Total 3 390 2 067
The third EQVA program established is the shareoption
program which applies to Board of directors, leaders and key
personnel in the Group. The participants receive 40 000 or
100 000 options, dependent of level in the group, with a vesting
period of 3 years. The program has effect from 1 January 2023.
This program continue into 2024 with no adjustments.
In desember 2023 EQVA introduced a new program regarding
independent subscription rights. The company can issue up to
3 659 000 independet subscription rights, each giving right to
subscribe for one new share in EQVA ASA. The subscription
rights can be subscribed by Board members and employees of
EQVA ASA and its subsidiaries.
The employees in EQVA ASA is part of a de-
fined contribution plan covering all employees
in the EQVA Group. The Group's pension
scheme satisfies the requirements of the Act on
Compulsory Occupational Pensions. Pension
costs for the Group's defined contribution
plans are expensed on a continuous basis with
earnings for the employees. The Group's duty
is limited to the payment of agreed contribution
and where the actuarial risk and investment risk
fall on the individual employee.
Pension scheme
The employees in EQVA ASA is part of a defined contribution
plan covering all employees in the EQVA Group. The
Group's pension scheme satisfies the requirements of the
Act on Compulsory Occupational Pensions. Pension costs
for the Group's defined contribution plans are expensed
on a continuous basis with earnings for the employees. The
Group's duty is limited to the payment of agreed contribution
and where the actuarial risk and investment risk fall on the
individual employee.
94ANNUAL REPORT 2023
NOTES PARENT COMPANY
NOTE 4 INVESTMENT IN SUBSIDIARIES
2023
Subsidiaries are accounted for using the EK method.
Changes in 2023
Eqva divested Havyard Leirvik Holding AS (HLH) to Tersan (Turkish shipyard company) in November 2023. The transaction
included also HLH's 2 subsidiaries Havyard Leirvik AS and Havyard Leirvik Eiendom AS. The transaction was settled for 30 MNOK
in cash. The accounting profit was 25,3 MNOK.
BKS Holding AS increased its ownership in Zenit Engineering AS, from 82% to 89%, during 2023.
EQVA ASA transferred its 50% ownership in BKS Holding AS to Handeland Industri AS - now 100% owner. The transaction
impacted the equity of HG Group AS as well (parent company of Handeland Industri AS). The transaction was carried out as an
asset contribution.
Havyard Eiendom Holding AS changed name to EQVA Eiendom Holding AS in 2023.
Company
Subsidiaries of EQVA ASA
Business office Owner's share Book value Company's
equity 100%
Company's
result 100%
HG Group AS Valen i Kvinnherad 100 % 215 000 000 213 585 676 -2 800 844
EQVA Eiendom Holding AS Sunde i Kvinnherad 100 % 51 440 31 000 -17 699
Havyard Ship Technology AS Leirvik i Sogn 100 % 0 7 007 269 146 969
Havyard Ship Invest AS Fosnavåg 100 % 0 -5 949 579 -2 360 573
Norwegian Marine Systems AS Fosnavåg 100 % 0 3 415 023 383 421
Mjølstadneset Eiendom AS Fosnavåg 100 % 4 232 926 9 801 192 1 100 861
Book value as at 31.12. 219 284 366 227 890 581 -3 547 865
Subsidiaries of EQVA Eiendom Holding AS
BKS Eigedom AS Sunde i Kvinnherad 100 %
Zenit Eigedom AS Sunde i Kvinnherad 100 %
Subsidiaries of HG Group AS
Handeland Industri AS Valen i Kvinnherad 100 %
Fossberg Kraft AS Valen i Kvinnherad 100 %
Fossberg Kraft Produksjon AS Valen i Kvinnherad 100 %
Subsidiaries of Handeland Industri AS
BKS Holding AS Sunde i Kvinnherad 100 %
Subsidiaries of BKS Holding AS
BKS Industri AS Sunde i Kvinnherad 100 %
BKS Power & Automation AS Sunde i Kvinnherad 100 %
Arnt Narheim AS Sunde i Kvinnherad 100 %
Zenit Engineering AS Sunde i Kvinnherad 89 %
BKS VVS AS Straume i Øygarden 67 %
Marine Support AS Storebø i Austevoll 70 %
95
ANNUAL REPORT 2023
NOTES PARENT COMPANY
2022
Subsidiaries are accounted for using the EK method.
Company
Subsidiaries of EQVA ASA
Business office Owner's share Book value Company's
equity 100%
Company's
result 100%
HG Group AS Sunde i Kvinnherad 100 % 125 940 965 180 300 054 -12 796 538
Havyard Eiendom Holding AS Sunde i Kvinnherad 100 % 50 000 -2 246 863 -2 296 863
Havyard Leirvik Holding AS Leirvik i Sogn 100 % 11 160 665 2 459 209 -26 596
Havyard Ship Technology AS Leirvik i Sogn 100 % 0 6 819 608 1 439 837
Havyard Ship Invest AS Fosnavåg 100 % 0 -1 821 903 -8 202 091
*BKS Holding AS Sunde i Kvinnherad 50 % 89 059 035 4 856 092 -354 780
Norwegian Marine Systems AS Fosnavåg 100 % 0 3 726 915 -12 147
Mjølstadneset Eiendom AS Fosnavåg 100 % 4 232 926 10 512 476 -162 621
Book value as at 31.12. 230 443 591 204 605 588 -22 411 799
Subsidiary of Havyard Leirvik Holding AS
Havyard Leirvik AS Leirvik i Sogn 100,0 %
Subsidiaries of Havyard Eiendom Holding AS
BKS Eiendom AS Sunde i Kvinnherad 100 %
Zenit Eiendom AS Sunde i Kvinnherad 100 %
Havyard Leirvik Eiendom AS Leirvik i Sogn 100 %
Subsidiaries of HG Group AS
Handeland Industri AS Sunde i Kvinnherad 100 %
Fossberg Kraft AS Sunde i Kvinnherad 100 %
Fossberg Kraft Produksjon AS Sunde i Kvinnherad 100 %
Subsidiaries of Handeland Industri AS
*BKS Holding AS - owned 50/50% beweeen
Handeland Industri AS and EQVA ASA
- total 100%
Sunde i Kvinnherad 50 %
Subsidiaries of BKS Holding AS
BKS Industri AS Sunde i Kvinnherad 100 %
BKS Power & Automation AS Sunde i Kvinnherad 100 %
Zenit Engineering AS Sunde i Kvinnherad 82.5%
BKS VVS AS Sunde i Kvinnherad 67 %
Marine Support AS Sunde i Kvinnherad 70 %
96ANNUAL REPORT 2023
Aquisition of BKS and Fossberg Kraft
In June 2022 Havyard Group ASA (later changed name to
EQVA ASA) aquried Fossberg Kraft and BKS. The settlement
of 215 MNOK was based on a combination of share issues,
sellers credit and cash repayment. See note 11 for information
regarding the share issue.
Other changes
Havyard Eiendom Holding AS was established during the autum
2022. The company is the parent company of BKS Eiendom
AS, Zenit Eiendom AS og Havyard Leirvik Eiend om AS (all
companies owned 100%). The establishment of the internal
property group was based on demerger/sales transactions
from respectively Havyard Leirvik AS (HLE), Zenit Engeneering
AS og BKS Holding AS. After the transactions HLE, Zenit and
BKS carry out operational core activities.
EQVA had a 50% ownership in HPR Spzoo. The company
suffered from missing orders and declining liquidities during
the autum 2022. In December 2022 the company was filed for
bankruptcy, the fileing included both the Norwegian branch
and the Polish registerd company. EQVAs accounted losse
where limited.
EQVA ASA reduced its ownership in HAV Group ASA, from
33.3% to 4.7% in June 2022. The reduction was due to
distribution of 10 000 000 dividend shares i June 2022. During
the autum 2022 EQVA continued to sell shares. At 31.12.2022
the ownhership was down to 4.4% (1.5 million shares).
See also note 5.
NOTES PARENT COMPANY
97
ANNUAL REPORT 2023
NOTES PARENT COMPANY
NOTE 5 SHARES AND SECURITIES
Shares and securities are valued at the lower of cost and fair value on the balance sheet date.
In Q1 2023 EQVA sold its investment (shares) in HAV Group ASA. The sale gave 13,7 MNOK in cash.
For accounting profit see note 2.
The investment in Fosnavåg kulturhus has a bookvalue NOK 0.
NOTE 6 TANGIBLE FIXED ASSETS
2023
The rent expense for 2023 amounts to NOK 536 287
(2022: NOK 535 975)
2022
The rent expense for 2022 amounts to NOK 535 975
(2021: NOK 1 291 493)
Company Owner's share Book value
Shares in HAV Group ASA 0% 0
Book value as at 31.12. 0
Operating equipment and fixtures Total
Acquisition cost as at 01.01 7 794 363 7 794 363
Additions during the year 169 379 169 379
Disposals during the year 0 0
Acquisition cost as at 31.12 7 963 742 7 963 742
Acc. depreciation as at 01.01 7 536 833 7 536 833
Acc. depreciation as at 31.12 before disp 7 584 577 7 584 577
Disposal depreciation 0 0
Acc. depreciation as at 31.12 7 584 577 7 584 577
Book value as at 31.12 379 166 379 166
Depreciation for the year 47 744 47 744
Economic life 3-5 år
Depreciation method Linear
Operating equipment and fixtures Total
Acquisition cost as at 01.01 10 194 330 10 194 330
Additions during the year 284 322 284 322
Disposals during the year 2 684 289 2 684 289
Acquisition cost as at 31.12 7 794 363 7 794 363
Acc. depreciation as at 01.01 9 174 590 9 174 590
Acc. depreciation as at 31.12 before disp 9 360 610 9 360 610
Disposal depreciation 1 823 777 1 823 777
Acc. depreciation as at 31.12 7 536 833 7 536 833
Book value as at 31.12 257 531 257 531
Depreciation for the year 186 020 186 020
Economic life 3-5 years
Depreciation method Linear
98ANNUAL REPORT 2023
NOTES PARENT COMPANY
2023 2022
Other long-term receivables 8 455 8 255
Total 8 455 8 255
Maturity after 1 year 8 455 8 255
Maturity after 5 year 0 0
NOTE 7 OTHER LONG-TERM RECEIVABLES
NOTE 8 RESTRICTED CASH
NOK 608 402 of cash and cash equivalents relates to tax withholdings.
NOTE 9 INTERCOMPANY BALANCES AND TRANSACTIONS
2023 2022
Non-current receivables 139 523 357 170 394 340
Current receivables 33 612 938 6 935 865
Accounts receivable 13 470 0
Current liabilities (incl group contribution) -26 761 532 -29 625 098
Total 146 388 233 147 705 107
Transactions 2023 2022
Revenues 9 405 410 4 731 323
Rental costs -536 287 -535 975
Total 8 869 123 4 195 348
99
ANNUAL REPORT 2023
NOTES PARENT COMPANY
NOTE 10 EQUITY
Number of shares
The number of shares is 71 987 316, at NOK 0.05.
Dividend
The board proposes NOK 0 in dividend for the general meeting.
Treasury shares
EQVA ASA has increased its number of treasury shares from 323 046 to 599 971 treasury shares (0.8 % of share capital)
as of 31/12/2023.
Share capital Own shares Share premium Retained earnings Total
Equity as at 01.01 3 599 366 -16 152 195 174 785 58 724 116 257 482 116
Profit for the year 19 865 349 19 865 349 -140 600 000
Aquisition of own shares -13 846 633 629 619 783 174 999 999
Correction 2022 - effekt group
contribution
787 209 787 209 -890 200
Equity as at 31.12. 3 599 366 -29 999 195 174 785 80 010 304 278 754 455
100ANNUAL REPORT 2023
NOTES PARENT COMPANY
NOTE 11 SHARE CAPITAL AND SHAREHOLDER INFORMATION
The company got one stock group and all shares have same rights.
The share capital was 3 599 366 divided by 71 987 316 shares, at NOK 0.05.
EQVA has 599 971 treasury shares (0.8 % of share capital) as of 31.12.2023.
Boardmember Vegard Sævik has indirect ownership in EQVA through his ownership in Havila Holding AS.
Shareholders as of 31.12.2023 Controlled by Number of shares Ownership
Nintor AS 16 938 645 23,5 %
Havila Holding AS Vegard Sævik (Board) 10 000 000 13,9 %
Neve Eiendom AS Even Matre Ellingsen (DB) 8 168 462 11,3 %
ROS Holding AS 5 660 027 7, 9 %
Eikestø Eiendom AS Rune Skarveland (Board) 4 960 847 6,9 %
Fureneset Eiendom AS 4 960 847 6,9 %
Eikestø AS Rune Skarveland (Board) 2 999 511 4,2 %
Fureneset Invest AS 2 999 511 4,2 %
Emini Invest AS 1 290 000 1,8 %
HSR Invest AS 1 290 000 1,8 %
Innidimann Invest AS Vegard Sævik (Board) 1 290 000 1,8 %
MP Pensjon PK 1 167 768 1,6 %
Other shareholders (<1 %) 10 261 698 14,3 %
Number of shares 71 987 316 100,0 %
Number of shares 71 987 816 100,0 %
101
ANNUAL REPORT 2023
NOTES PARENT COMPANY
Book value of liabilities secured by mortgages 2023 2022
Other long term liabilities (financial leasing) 0 0
Total 0 0
Not booked guarantee 2023 2022
Guarantee supplier for daughter of subsidiary 0 250 000
Guarantee supplier for subsidiary 0 0
Guarantee customer for subsidiary 0 0
Total 0 250 000
As safety for the guarantees there are given mortages in shares and accounts receivables.
Book value of pledged assets 2023 2022
Leased equipment 0 0
Accounts receivable 0 0
Total 0 0
NOTE 12 NON-CURRENT LIABILITIES
Other non-current liabilities
Other long-term liabilities includes project grants for the
R&D project FreeCO2ast (MNOK 1.7), which are settled against
incurred project cost which are invoiced from HAV Group.
In addition the amount includes debt to Havila Holding AS
(MNOK 13.3) that was transferred from Havyard Leirvik AS to
EQVA ASA, as part of the agreement in June 2022 when BKS
and Fossberg Kraft were aquired.
Pareto loan
25 MNOK was repaid to Pareto in 2023. Outstanding debt is
total 65 MNOK, where 20 MNOK is classified under Current
NOTE 13 MORTGAGES
Non-current liabilites 2023 2022
Loan Pareto 45 000 000 70 000 000
Sellers credit to shareholders 25 126 389 25 000 000
Other non-current liabilities 15 337 826 14 298 328
Total 85 464 215 109 298 328
liabilities and 45 MNOK under Non-current liabilities. General
conditions - quarterly installments of 5 MNOK in 3 years -
then settlement of the rest amount. Nominal intererest rat p.t
6.75%.
Yearly installments:
2024: 20 MNOK - classifed under "Current liabilities"
2025: 45 MNOK
Sellers credit to shareholders
Longterm loan. Amount part of the settlment when BKS and
Fossberg Kraft were aquired in June 2022.
102ANNUAL REPORT 2023
NOTES PARENT COMPANY
NOTE 14 TAXES
Taxes are expensed as they incur, i.e. the tax charge is related to the pre-tax accounting profit. Taxes are comprised of payable
tax (tax on the year’s taxable income) and changes in deferred tax.
The tax expense is allocated between the ordinary profit and extraordinary items in accordance with the tax base.
Specification of temporary differences:
Below is a breakdown of the difference between profit before taxes in the P&L statement and the year’s tax base.
The income tax expense in the profit and loss statement consists of the following:
2023 2022
Financial leasing 0 0
Non-current assets 65 054 24 037
Gain/(loss) account for deferral -98 511 -123 138
Receivable 0 -30 226
Tax losses carried forward -39 444 590 -27 352 144
Cut off interest rates carried forward -2 018 802 -2 018 802
Total temporary differences and tax losses carried forward. -41 496 850 -29 500 274
Not accounted deffered tax asset 0 0
Deferred tax / deferred tax asset (-) -9 129 307 -6 490 059
Applied tax rate 22 % 22 %
2023 2022
Profit before taxes 16 598 825 103 830 422
Permanent differences -31 446 662 -131 401 120
Change in temporary differences -95 871 218 555
The year's tax base before tax losses carried forward -14 943 709 -27 352 144
Changes in tax losses carried forward 14 943 709 27 352 144
Net group contribution 0 0
Utilisation of tax losses carried forward 0 0
The year's tax base 0 0
Payables tax in balance sheet 0 0
2023 2022
Tax payable 0 0
Change deffered tax assets (-) -3 266 524 -6 490 059
Tax effect from group contribution 0 0
This year's tax expense -3 266 524 -6 490 059
103
ANNUAL REPORT 2023
NOTES PARENT COMPANY
NOTE 15 FINANCIAL MARKET RISK
Interest rate risk
Interest rate risk arises in the short and medium run as the
Company's liabilities are subject to floating interest rates.
Foreign currency risk
Fluctuations in exchange rates entail both direct and indirect
financial risks for the company. The Group uses currency
hedging instruments to keep the currency risk at a low level.
Liquidity risk
Liquidity risk is the risk that the group is unable to fulfill its
financial obligations as they fall due. The Group has routines
for continued monitoring of the cash flow.
NOTE 16 SUBSEQUENT EVENTS
There has not been detected any subsequent event with impact
on the Financial statements after balance sheet date.
The accounts has been prepared under the assumption of going
concern.
See also Group note 30 for more information in group accounts
related to subsequent events.
104ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
105
ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
PricewaterhouseCoopers AS, Sandviksbodene 2A, Postboks 3984 - Sandviken, NO-5835 Bergen
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of Eqva ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Eqva ASA, which comprise:
the financial statements of the parent company Eqva ASA (the Company), which comprise the
balance sheet as at 31 December 2023, the profit or loss statement and statement of cashflow for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and
the consolidated financial statements of Eqva ASA and its subsidiaries (the Group), which
comprise the statement of financial position as at 31 December 2023, the statement of profit or
loss, statement of other comprehensive income, statement of changes in equity and statement of
cashflow for the year then ended, and notes to the financial statements, including material
accounting policy information.
In our opinion
the financial statements comply with applicable statutory requirements,
the financial statements give a true and fair view of the financial position of the Company as at 31
December 2023, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
the consolidated financial statements give a true and fair view of the financial position of the Group
as at 31 December 2023, and its financial performance and its cash flows for the year then ended
in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company and the Group as required by
relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 6 years from the election by the general meeting of the
shareholders on 28 May 2018 for the accounting year 2018.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
106ANNUAL REPORT 2023
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2 / 5
Revenue Recognition over Time has the same characteristics and risks as in the prior year, and therefore
continues to be an area of focus this year. Furthermore, Valuation of Goodwill qualified as a new Key Audit
Matter for this year due to the significant value and applied judgment in underlying assumptions.
Key Audit Matters
How our audit addressed the Key Audit Matter
Revenue Recognition over Time
The Group has multiple revenue streams i.e.,
service yard, service and maintenance to land
based and maritime industry and construction of
small-scale hydropower plants.
Revenue recognition over time was considered a
key audit matter as the Group has multiple
ongoing
long-term contracts at the balance-sheet date, and
because estimating the percentage of completion
may be complex and affected by management
judgment. Specifically, management applies
judgment when estimating total project costs and
determining the contract price.
Refer to notes 2.7, 3.1, 3.2 and 14 to the
consolidated financial statement for further
information on the Group’s revenue recognition.
We reviewed a selection of contracts and assessed
the Group’s principles for revenue recognition
ag
the accounting of contracts was in accordance with
the terms of the contracts and that the accounting
principles applied were in line with relevant
requirements in IFRS 15.
Measurement of percentage of completion,
including determination of final forecasted costs,
involves use of judgment from management. As
part of our audit, we conducted interviews with
management and project leaders to gain an
understanding of the estimates and underlying
assumptions. We also challenged management on
the underlying assumptions.
Furthermore, we assessed the reliability of
management's estimates by comparing budgets
against actual costs incurred for a selection of
projects.
To assess the estimated percentage of completion,
we
, among other things, tested whether accrued
costs had been allocated to correct projects. We
also challenged project managers on the estimated
remaining cost to complete the projects.
T
o test whether the correct contract price was used
as a basis for calculating recognized revenue, we
obtained a selection of contracts and variation
orders and compared these to the contract prices
used as a basis for revenue recognition.
No material deviations were detected during the
course of our audit procedures.
We also assessed and found that the disclosure
requirements in IFRS were met.
Valuation of Goodwill
At 31 December 2023,
Goodwill amounted to NOK
248 260 thousand in the consolidated statement of
financial position.
Goodwill is allocated to the cash generating unit
identified in accordance with the Group’s operating
segment, Products, Solutions & Renewables.
Management performed an impairment
We obtained an understanding of management’s
valuation process and evaluated relevant internal
control activities.
We reviewed management’s allocation of goodwill
to the Group’s operating segment, Products,
Solutions & Renewables, and found this to be
reasonable. We reviewed management’s model
107
ANNUAL REPORT 2023
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assessment at the balance sheet date and
concluded that the recoverable amount of goodwill
was higher than the carrying amount for the
segment. Consequently, no impairment was
recognized.
We focused on valuation of goodwill due to its
significant value and the inherent risk related to
application of management judgment. Specifically,
management applies judgment in determining
future cash flows and the applied discount rate.
We refer to note 11 to the consolidated financial
statements for further information.
and impairment assessment and tested whether
the model was mathematically accurate. We found
that the model was based on recognized principles
and that the model's calculations were
mathematically accurate.
We compared the different elements in the discount
rate calculation to our own expectations and the
general expectations in the market and found that
the applied discount rate was reasonable.
We evaluated management’s assumptions related
to future cash flows by comparing them to the
budgets adopted by the Board of Directors and the
strategy plan for the Group’s various cash
generating units.
We performed sensitivity analyses and challenged
management’s assumptions related to future cash
flows. We found that the assumptions were
reasonable and in line with the Group’s current
market visibility and historical hit rates. The
terminal growth rate in the model was compared to
the market’s expectation of long-term inflation.
We also assessed and found that the disclosure
requirements in IFRS were met.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the
Board of Directors’ report and the other information accompanying the financial statements. The other
information comprises information in the annual report, but does not include the financial statements and
our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the
Board of Directors’ report nor the other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’
report and the other information accompanying the financial statements. The purpose is to consider if there
is material inconsistency between the Board of Directors’ report and the other information accompanying
the financial statements and the financial statements or our knowledge obtained in the audit, or whether the
Board of Directors’ report and the other information accompanying the financial statements otherwise
appears to be materially misstated. We are required to report if there is a material misstatement in the
Board of Directors’ report or the other information accompanying the financial statements. We have nothing
to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
is consistent with the financial statements and
contains the information required by applicable statutory requirements.
Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and
fair view in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group
that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU.
108ANNUAL REPORT 2023
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4 / 5
Management is responsible for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
The financial statements of the Company use the going concern basis of accounting insofar as it is not likely
that the enterprise will cease operations. The consolidated financial statements of the Group use the going
concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's and the Group's internal control.
evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company's and the Group's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company and the Group to cease to continue as a going concern.
evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves a true and fair view.
obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
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We communicate with the Board of Directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Eqva ASA, we have performed an assurance engagement
to obtain reasonable assurance about whether the financial statements included in the annual report, with
the file name Eqva_ASA-2023-12-31-en, have been prepared, in all material respects, in compliance with
the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single
Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities
Trading Act, which includes requirements related to the preparation of the annual report in XHTML format,
and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.
This responsibility comprises an adequate process and such internal control as management determines is
necessary.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF
reporting, see: https://revisorforeningen.no/revisjonsberetninger
Bergen, 21 March 2024
PricewaterhouseCoopers AS
Fredrik Gabrielsen
State Authorised Public Accountant
(This document is signed electronically)
110ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
Signers:
Name
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Date
2024-03-20 20:11BANKIDGabrielsen, Fredrik
Revisjonsberetning
EQVA ASA
ANNUAL
REPORT
2023
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